Large Amount Of Bitcoin Purchases Could Cause Bitcoin Shortages
Companies such as Grayscale and MicroStrategy are leading Wall Street’s adoption of Bitcoin this year. U.The chief executive of the UK-based CoinCorner Exchange has recently re-raised the possibility of a Bitcoin shortage, Today reported.
Business software giant MicroStrategy currently holds 40,824 bitcoins in its reserve, according to data shared by senior Messari research analyst Ryan Watkins.
This amount of BTC is worth $ 797 million, and the company made a profit of $ 322 million by investing $ 475 million in the leading cryptocurrency. This allocation of funds to the world’s largest cryptocurrency was inspired by Michael Saylor, the company’s CEO, who is himself a Bitcoin owner and recently turned into a “Bitcoin Jesus.” The title belonged to Roger Ver until he chose to join Bitcoin Cash supporters by escaping the Bitcoin camp.
MicroStrategy has completed its fundraising process to buy more Bitcoins. The company raised $ 650 million from investors.
Watkins said in a tweet:
“The above does not even include MicroStrategy’s recently completed $ 650 million convertible bond increase, which will be used to buy BTC. However, MicroStrategy’s total BTC assets will exceed $ 1 billion.”
Some have commented that MicroStrategy is about to become a Bitcoin exchange traded fund (ETF).
Grayscale Gained 115,236 Bitcoins In Fourth Quarter
Danny Scott, chief executive of the UK-based cryptocurrency exchange, believes bitcoin shortages are getting closer.
In a tweet, the CEO noted that Grayscale Investments had $ 2.2 billion in the fourth quarter of this year, equivalent to 115,236 BTC.
Recently, Scott also pointed to the fact that $ 700 million worth of Bitcoin has been withdrawn from cryptocurrency exchanges, as users, including financial institutions, store BTC in cold warehouses for long-term use.