While the price of bitcoin reached $58,332.36 last week and its market cap surpassed $1 trillion, big companies that invested in it have already made a huge profit.
One of the biggest companies that have purchased bitcoin, and we have all been talking about lately, is Elon Musk’s Tesla Inc. In an SEC filing on February 8th, the firm revealed it made an investment of $1.5 billion in bitcoin.
Tesla has a market capitalization of $757,554,688,042 and the total invested in BTC was around 0.3%, approximately 48k coins. Since the purchase was made, this amount of tokens has now increased in value, giving the company almost $1 billion profit in 2 weeks. That is more than 30% of what Tesla Inc. made in 2020 from car sales.
The company holding the biggest quantity of the Bitcoin token is MicroStrategy Inc. with 71,079 BTC. The firm, which is focused on business intelligence (BI), cloud-based services, and mobile software, invested a total of $1,145,000,000 and today’s value amounts to $3,846,155,769. The last purchase they made was of 295 BTC in early February 2021, and it is also trying to get other companies to step into the bitcoin world.
Galaxy Digital Holdings is a merchant banking institution focused on crypto and holds 16,402 BTC. The buying price was $134,000,000 and is now worth $887,528,622. The firm was founded in 2018 by Michael Novogratz and has been interacting with a lot of cryptocurrency companies.
According to analysts, one of the major reasons for the rising price of bitcoin is the involvement of institutional investors. The growing quantity of companies keeping this digital currency in their balance sheet is making the crypto market more reliable and safe for others to invest in. While the market of cryptocurrency advances, it is now probable for public companies to go down the same road. This would help give flexibility in a very volatile environment.
We are now waiting for the next institution to invest in digital currency.