The crypto market has surged recently. Under the strong bullish sentiment in the market, the price of Bitcoin once exceeded $35,000 and is currently hovering around this price.
While retail investors are cheering for the rise of BTC, let us turn our perspective back to the “big players” in the market—institutional investors.
After this round of sharp rises, what happened to the investment positions of the large number of traditional institutions that once made the crypto market happy? Are the positions of the institutions now profitable or losing money?
Coingecko data shows that there are currently 28 listed companies holding Bitcoin in the world, holding a total of 239,494 Bitcoins, about 240,000 BTC, and a total market value of approximately US$8.1 billion.
In addition to listed companies, sovereign states are also alternative investors in cryptocurrency. They hold large amounts of Bitcoin either actively or passively (for judicial reasons), among which El Salvador is the most famous.
Odaily counts the Bitcoin holdings of mainstream institutions and countries. The details are as follows:
Of the 28 listed companies, 16 hold more than 500 Bitcoins. In addition, there are 4 sovereign countries that hold more than 500 coins.
American government
The U.S. government is the most notable of the Bitcoin whales. The currency holder is neither a crypto investor nor a financial institution, but unknowingly, the U.S. government has become the leading Bitcoin rich man in the crypto world. What’s even more interesting is that it doesn’t care about this digital currency. ups and downs.
Jarod Koopman, director of the IRSs Cyber and Forensic Services Division, has publicly stated, We dont play the market. We basically set up our processes.
Unlike other whales who accumulate Bitcoin through purchases, most of the U.S. government’s Bitcoin comes from confiscation revenue.
Three recent seizures alone have left the governments coffers with more than 200,000 bitcoins. Previously, the U.S. government once sold about 20,000 Bitcoins. Every time the U.S. government liquidates, it makes the encryption market turbulent.
Coingecko shows that the United States still holds more than 207,000 Bitcoins, worth about $7.19 billion. In contrast, MicroStrategy, a well-known Bitcoin fanatic fan, currently only holds 158,000 Bitcoins.
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MicroStrategy
Floating profit: approximately US$816 million (17.4%)
MicroStrategy was the first U.S. listed company to buy a large amount of Bitcoin, and it is also the U.S. listed company with the largest currency holdings. From August 2020 to now, MicroStrategy has announced a total of 28 BTC purchases, purchasing a total of 158,245 Bitcoins, with a total average holding price of $29,582.
The reason why this company is well known is not only because of its large number of Bitcoin purchases, but also because of MicroStrategy’s “mania” for Bitcoin. The company has never sold BTC since its purchase, and its diamond hands have crossed bulls and bears.
Coingecko data shows that the BTC purchased by the company has generated a floating profit of 815, 584, 823 US dollars, approximately 816 million US dollars, and a floating profit of 17.4%.
Since MicroStrategy first purchased Bitcoin in August 2020, Bitcoin has gained 147% in that period. The SP 500 rose 26% and the Nasdaq gained 18%; gold fell 3%, silver fell 19% and bonds fell 24%. There is no doubt that Bitcoin is the best-performing asset class during this period. MicroStrategys diamond hands are paying off handsomely.
In addition to diamond hands, an interesting fact that MicroStrategy has received more attention is that the companys buying behavior has a metaphysical impact on the market.
After each purchase, there is often a bearish refrain on social media - Buy MicroStrategy and the market is going to go down.
Odaily has also reviewed MicroStrategy’s 28 BTC purchases to explore whether there is some connection between MicroStrategy’s announcement of BTC purchases and market prices.
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Is every time MicroStrategy announces a BTC purchase a signal of decline?
Another BTC ETF: Behind MicroStrategy’s continued massive Bitcoin buying
Tesla
Floating profit: approximately US$364 million (8.5%)
If you mention the most appealing man in the crypto market, Im afraid all investors have only one option - Tesla CEO, SpaceX CEO, and the self-proclaimed Dogecoin CEO Elon Musk.
Whenever Musk calls for orders, the market will experience strong fluctuations. Musk not only calls for orders himself, but Tesla, led by him, is deeply involved in the encryption market and has purchased a large number of Bitcoins.
In mid-October, Tesla released its latest financial report. The financial report shows that the company did not buy or sell any Bitcoin in the third quarter, and this is the fifth consecutive quarter that Tesla has maintained its position unchanged.
Coingecko data shows Tesla holds about 10,500 Bitcoins and has a market capitalization of about $364 million.
Bitcoin Mining Company
Marathon floating profit: approximately US$461 million (144%)
Different from the coin speculation of other companies listed in this article, mining companies are a relatively special entity among institutional holdings. For example, Marathon and HUt 8 both adopt the business model of self-operated mining and then long-term holding and investment in BTC.
Its Bitcoin does not rely on large purchases, but a considerable part comes from its own output. Because of this, its Bitcoin holding costs are much lower than other companies. In terms of return, Marathon’s 144% return ranks first among listed companies’ Bitcoin returns.
Marathon was incorporated in Nevada in 2010 as Verve Ventures, Inc. In 2017, the company purchased digital asset mining equipment and established a data center in Canada for mining digital assets. However, the company ceased operations in Canada in 2020 and consolidated all operations into the United States at that time. The company has since expanded its Bitcoin mining activities in the United States and internationally. The company changed its name to Marathon Digital Holdings, Inc on March 1, 2021.
Currently, the company’s main business is self-operated Bitcoin mining. Its business strategy is to finance the purchase of mining machines to deploy mines, pay the cash operating costs of production, and then hold Bitcoin as a long-term investment.
Hut 8 is a Canadian Bitcoin mining company that focuses on mining Bitcoin through the use of advanced hardware and data center resources. It is one of the largest publicly traded Bitcoin mining companies in North America. In addition to its mining operations, Hut 8 also provides other services and solutions related to cryptocurrency, such as high-performance computing.
Hut 8 typically locates its mining facilities in areas with lower energy costs, such as some remote locations in Canada, to reduce operating costs and increase efficiency. This allows the company to remain competitive in the highly competitive cryptocurrency mining market.
Another interesting piece of data is that although Bitcoin has made huge returns in recent times. But the stocks of Bitcoin mining companies have higher returns than Bitcoin.
According to data from CoinGecko, all crypto mining stocks except Argo Blockchain and TeraWulf have outperformed Bitcoin in year-to-date returns, averaging about 150% compared to Bitcoin’s 84.61%. This also illustrates the market’s optimistic sentiment towards Bitcoin from another perspective.
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2023 Crypto Mining Survival Guide
beautiful pictures
Floating loss: approximately US$16.86 million (-34.1%)
Meitu is the only Chinese company in this article. Currently, its BTC and ETH holdings have a total loss of $16,855,368.
Last month, Meitu released its 2023 interim results report. The report shows that in the first half of this year, Meitus revenue reached HK$1.261 billion, a year-on-year increase of 29.83%; net profit was HK$151 million, a year-on-year increase of 320.4%; net profit attributable to shareholders reached HK$228 million, a year-on-year increase of 20%. Profit exceeded the previous forecast of HK$220 million to HK$265 million.
The companys investment in cryptocurrencies suffered a book loss of approximately HK$670 million. Due to the recovery in the market this year, the book impairment was reversed by HK$186 million.
Back in 2021, Meitu purchased 31,000 ETH and 940.89 BTC. Meitu, which has been holding the cryptocurrencies, said the Group has not purchased or sold any cryptocurrencies under the cryptocurrency investment plan.
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