Institutional investors like MicroStrategy, PayPal, and Tesla, have all set their eyes on Bitcoin. New data suggests that these big-money players have been able to accumulate nearly 3% of Bitcoin’s total circulating supply.
A few institutional investors have amassed over 460,500 BTC, which is valued at more than $22.5 billion at Bitcoin’s current price. Michael Novogratz notes that this figure excludes the $3 million worth of BTC that has been forever lost. The ex-hedge fund manager opines that the digital asset could be heading for a supply shortage if institutions continue the current buying spree.
The current list of top institutional hodlers includes MtGox K.K, which has close to 141,690 Bitcoin ($6.6 billion), Block.one with around 140,000 BTC ($6.5 billion), MicroStrategy with 71,000 BTC ($3.3 billion) and Tesla with 38,500 BTC (about $1.8 billion). This does not include Grayscale’s Bitcoin Trust which currently manages over $31 billion worth of Bitcoin.
Analysts are predicting that corporations would seek to hold a part of their treasury in Bitcoin as a means to hedge against inflation. The basis for this prediction is Bitcoin’s finite supply, as well as the inability to accelerate its supply through additional mining.