- The Bitcoin price continues to rise as a result of FOMO and the Bitcoin purchase by other institutional investors.
- Bit Digital Inc is another NASDAQ-listed company that is buying Bitcoin as reserve currency.
As Crypto News Flash already reported, the Bitcoin price has continued to rise in the last few hours and has broken the $12,000 mark. Experts in the industry see the current FOMO (= Fear of Missing Out) in particular as a key driver behind Bitcoin’s recent price increase. However, other major financial giants are also entering the market and are increasingly buying Bitcoin.
Bit Digital Inc. invests in Bitcoin
U.S.-based mining company Bit Digital, Inc. has invested more than $10 million in Bitcoin, purchasing nearly 1,000 additional BTCs. Bit Digital, Inc. began operations in February of this year and is listed on the NASDAQ. The company thus joins a long list of listed companies that have included Bitcoin in their portfolio as a reserve currency.
The Bit Digital, Inc. [NASDAQ:BTBT] added @ 949.5 BTC
The Tezos Foundation [private]added @ 24,808 BTC
— ECC OPTIMISM (@nvk) October 20, 2020
In a new press release, the company has published its financial results for the first two quarters of 2020 and has once again significantly increased its profits. As a result, Bit Digital, Inc. purchased 100 new high-performance MicroBT M21S Bitcoin (BTC) miners last month. As a result, the hashrate was increased to 1.250 PH/s.
According to the website bitcointreasuries.org, institutional investors now own nearly 4%, $9,367,146,800 or 785,999 BTC, of the total Bitcoin supply with a continuing upward trend. Most recently, Square bought Bitcoins worth more than $50 million, investing just under 1% of the company’s assets.
MicroStrategy also invested in BTC, purchasing more than 20,000 Bitcoins worth more than $450 million. CEO Michael Saylor called this investment a logical step to keep pace with the trend of the times and be prepared for the impact of the Federal Reserve’s monetary policy:
If you were in my position … you’re gonna go and you’re on you’re going to audition a bunch institutional-grade exchanges. You’re going to work through and look for institutional-grade custodians Yeah, you’re going to look at you know all of the security issues, all the technology issues, etc. You’re gonna think about the team you’re gonna build a relationship with them…
Grayscale leads the list of institutional investors. The company had recently purchased three times the amount of Bitcoins that the Miners were able to produce in the same time. This trend will continue according to industry experts and could contribute to a rising Bitcoin price.