Institutional investors still holding crypto despite recession fear

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On Wednesday, Jan. 25, 2023, Tesla, the electric car maker, reported that they did not buy or sell any bitcoin in the fourth quarter despite the value of bitcoin declining. The value of the Tesla digital asset was reduced from $218 million to $184 million. This was due to impairment charges for the decline in bitcoin price. 

Bitcoin price was on the downslide in 2022

With the high volatility in the cryptocurrency market in 2022, bitcoin’s price reduced to below  $20,000 in the fourth quarter of the year. However, some institutional investors did not sell their bitcoins. 

Other companies are also increasing their cryptocurrency portfolio despite the market’s down slide and uncertainty.  

Microstrategy is Still Holding Bitcoin

MicroStrategy, led by Michael Saylor, the bitcoin maximalist, is another institutional investor still holding onto its bitcoin. The company bought $250 million worth of bitcoin in August 2020 and added $175 million worth of bitcoin in September of the same year. 

In 2022, Michael Saylor added more bitcoin to its portfolio despite the bearish market. The CEO announced that MicroStrategy bought 301 BTC and now owns 130000 bitcoin. This is equivalent to 0.62% of bitcoin that will ever exist. 

Marathon Digital Holdings

Marathon Digital Holdings, a bitcoin mining company, is thought to be the second-largest publicly traded corporation owning bitcoins.

In its third quarter 2022 report, the institutional investor’s CEO Fred Thiel reported that they were holding 11300 BTC. They are also planning to add more bitcoin to their portfolio. 

The Block Inc 

Square’s Cash App acquired 4709 bitcoins in 2020 when it was launched. Since then, it has continuously bought more bitcoin increasing its portfolio in cryptocurrency.  The company changed its name to Block while retaining its ticker SQ to show its commitment to blockchain technology. 

The Block survived 2022 after plunging to a low of 61%. The company has gained 27%, prompting investors to have new hopes. 

Gemini exchange 

Gemini exchange, is an institutional investor privately owned by Cameron and Tyler Winklevoss, who are thought to be the first bitcoin billionaires. According to Forbes, they became billionaires holding 70,000 bitcoins. 

The US-based crypto exchange company was recently charged with offering unregistered securities to investors through their Gemini earn program. They also announced that they would lay off 10% of their staff.

Gemini exchange was valued at $7.1 billion at the end of 2022. The two brothers also own Nifty gateway, a non-fungible token (NFT) buy-and-sell platform.

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