Big Players Betting On Bitcoin: Who's Investing?

Bitcoin has gone from being considered a fringe investment to a legitimate one, with several big companies investing in it. This shift has happened rapidly, with institutional support for the cryptocurrency growing. In fact, more than 4% of all Bitcoin in circulation is held by institutions. Some of the major firms that have invested in Bitcoin include Tesla, Block, Coinbase, MicroStrategy, and Galaxy Digital Holdings. These companies have collectively purchased billions of dollars' worth of Bitcoin. The interest from large publicly-traded companies is a bellwether of the growing interest in the sector.

Why big companies are investing in Bitcoin

Bitcoin has become an increasingly popular investment for big companies in recent years, with some firms buying billions of dollars' worth of the cryptocurrency. Here are some reasons why large companies are investing in Bitcoin:

Diversification and Inflation Hedge

Bitcoin's low correlation with traditional assets has led some investors to diversify their portfolios, which may have been previously heavy on bonds and equities, by allocating a portion to Bitcoin. The limited supply of Bitcoin, which is controlled by computer code rather than a central authority, is also seen as a hedge against inflation, making it attractive to investors looking to protect their purchasing power.

Potential for Outsized Returns

Bitcoin has experienced significant price increases, with its value surging past $22,000 in 2020 and reaching an all-time high of over $44,000 in 2021. This has attracted investors who are seeking outsized returns and believe in the continued growth potential of the cryptocurrency. Chamath Palihapitiya, founder and CEO of Social Capital, predicted that Bitcoin's price could reach $100,000, $150,000, or even $200,000 in the future.

Technological Innovation and Blockchain Adoption

Some companies are investing in Bitcoin due to their interest in blockchain technology and its potential to revolutionize various industries. Blockchain provides a secure, decentralized, and transparent way to store and transmit data, and big companies want to explore its applications in their operations. For example, KPMG has expanded its blockchain strategy and supported Microsoft, Tomia, and R3 in developing a solution for 5G networks.

Increased Institutional Adoption and Legitimacy

The involvement of large companies and institutional investors in the Bitcoin market has added legitimacy to the cryptocurrency. Notable companies such as Tesla, MicroStrategy, and Square have made significant investments in Bitcoin, and financial giants like PayPal and Fidelity have also shown support for the cryptocurrency. This has increased public confidence in Bitcoin and attracted even more investors, creating a positive feedback loop.

Brand Recognition and Marketing

By embracing Bitcoin, companies can signal their innovation and technological prowess, enhancing their brand image and attracting customers who are interested in cryptocurrencies. For example, Square's CEO Jack Dorsey is a well-known advocate for Bitcoin, and the company's Cash App allows users to easily buy and sell the cryptocurrency. This aligns with Square's goal of providing "an instrument for economic empowerment" and participating in the global monetary system.

Which big companies are investing in Bitcoin

The institutional adoption of Bitcoin has gained momentum in recent years, with several big companies investing in the cryptocurrency. Here is a detailed overview:

MicroStrategy Incorporated

MicroStrategy, a prominent business analytics platform, has been one of the most vocal supporters of Bitcoin. The company, founded in 1989 by Michael Saylor and Sanju Bansal, provides business intelligence software and cloud-based services for data analysis. In August and September 2020, MicroStrategy made waves by investing $425 million in Bitcoin, and as of July 2022, it holds 129,699 BTC in reserve, worth over $2.8 billion. The company's CEO, Michael Saylor, is also a strong advocate of Bitcoin and has publicly disclosed his personal holdings of 17,732 BTC.

Tesla

Tesla, the electric vehicle manufacturer, joined the ranks of companies investing in Bitcoin in December 2020, with a $1.5 billion investment. While Tesla has had an on-off relationship with Bitcoin, at one point accepting it as payment before abruptly discontinuing, it still holds a significant amount of Bitcoin. As of its Q2 2022 update, Tesla has sold approximately 75% of its Bitcoin holdings, retaining 10,725 BTC, worth around $233 million.

Block (formerly Square)

Block, previously known as Square, is a financial payment company founded by Twitter's CEO, Jack Dorsey. Square has been a long-time supporter of Bitcoin, with its Cash App offering Bitcoin trading since 2018. In October 2020, the company invested $50 million in Bitcoin, and it has continued to invest, with a further $170 million investment disclosed in its Q4 2020 earnings statement. Block's commitment to Bitcoin is evident, and as of May 2021, the company held 8,027 BTC, worth $174 million.

Galaxy Digital Holdings

Galaxy Digital Holdings is a publicly traded company that provides a range of services, including investment banking and asset management, specifically tailored for the cryptocurrency and blockchain sectors. Founded in 2018 by Michael Novogratz, the company has been an active investor in Bitcoin and other cryptocurrencies. As of 2022, Galaxy Digital Holdings holds about 16,400 BTC in its treasury, valued at approximately $569 million.

Hut 8 Mining

Hut 8 Mining is a Canadian company focused on Bitcoin mining. With data centers across North America and Canada, Hut 8 Mining strategically mines Bitcoins efficiently and at low costs. The company is listed on the Toronto Stock Exchange and has made significant investments in Bitcoin. As of Q2 2020, Hut 8 Mining had invested $36 million in Bitcoin, and its holdings continue to grow.

Voyager Digital

Voyager Digital is a crypto-asset broker that provides services to both retail and institutional buyers. Listed on the Canadian Stock Exchange, the company has made notable investments in Bitcoin. In October 2022, Voyager Digital acquired the French crypto exchange LGO Markets, expanding its presence in the European market.

Riot Blockchain

Riot Blockchain is a U.S.-based company that trades in cryptocurrencies and invests in blockchain businesses. The company is listed on the Nasdaq and has shown a strong interest in Bitcoin, Bitcoin Cash, and Litecoin. In June 2020, Riot Blockchain invested $7 million in Bitcoin and a further $17.7 million in Bitcoin mining hardware, indicating its commitment to the cryptocurrency.

Coinbase Global

Coinbase, one of the most well-known crypto firms, is a crypto exchange that went public in April 2021. While its stock price has declined since its debut, Coinbase still holds a significant amount of Bitcoin. As of February 2021, the company had $230 million in Bitcoin on its balance sheet, and it continues to be a significant player in the crypto space.

Other Notable Mentions

Other big companies that have shown interest in or invested in Bitcoin include:

• Microsoft Corporation
• Mastercard Incorporated
• Advanced Micro Devices, Inc.
• The Goldman Sachs Group, Inc.
• PayPal Holdings, Inc.
• Cypherpunk Holdings Inc.
• DigitalX
• Hive Blockchain Technologies Limited
• Argo Blockchain PLC
• FRMO Corp.

How much Bitcoin are big companies buying

Several major firms, including Tesla, Block, and Coinbase, have collectively purchased hundreds of millions of dollars worth of Bitcoin.

MicroStrategy, a prominent business analytics platform, has adopted Bitcoin as its primary reserve asset. As of May 2025, the company holds 214,400 BTC in reserve, equivalent to $14.8 billion.

In December 2020, an SEC filing revealed that Tesla invested "an aggregate $1.50 billion" in Bitcoin. As of May 2024, the company holds 9,720 BTC in its portfolio, worth around $677 million.

Hut 8 Mining Corp, a Bitcoin mining firm, holds 9,109 BTC, worth around $644 million.

Riot Platforms, a crypto mining outfit, holds 9,084 BTC, worth $643 million.

Coinbase, a well-known crypto exchange, held $230 million in Bitcoin on its balance sheet ahead of its public listing in April 2021. By June 2024, it had 9,000 BTC in its treasury, worth just under $642 million.

These are some examples of big companies that are investing in Bitcoin and the amounts they are buying. The amounts vary, but they are all making significant investments in this cryptocurrency.

How are big companies buying Bitcoin

The surge in Bitcoin's price has been attributed to institutional support, with several major firms, including Tesla, Block, and Coinbase, collectively purchasing hundreds of millions of dollars worth of Bitcoin. This has led to a flood of interest from mainstream businesses, with more than two dozen public companies now owning some cryptocurrencies on their balance sheets.

One of the first major companies to invest in Bitcoin was MicroStrategy, a prominent business analytics platform. In August and September 2020, the company bought $425 million worth of Bitcoin, making it the largest publicly traded company to invest in Bitcoin at the time. The company has since continued to aggressively pursue its Bitcoin buying spree, with CEO Michael Saylor even stating that he was buying $1,000 in Bitcoin every second. As of July 2022, MicroStrategy holds 129,699 BTC in reserve, equivalent to just over $2.8 billion.

Another early investor in Bitcoin was Square, a financial payment company founded by Jack Dorsey, the CEO of Twitter. In October 2020, Square invested $50 million in Bitcoin, citing the fact that "cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company's purpose". Square has also been notably bullish on social media when it comes to Bitcoin, with Dorsey putting Bitcoin in his Twitter bio.

Other notable companies that have invested in Bitcoin include Galaxy Digital Holdings, a publicly traded company looking to create institutional infrastructure for cryptocurrency; Voyager Digital, a crypto brokerage; Hut 8 Mining, a Canadian bitcoin mining company; and Riot Blockchain, a crypto mining outfit.

It is worth noting that the 2022 crypto crash has seen the value of Bitcoin holdings plummet, substantially denting the value of companies' Bitcoin holdings. Despite this, the growing prominence of financial firms in Bitcoin reflects the increasing convergence between the cryptocurrency financial system and the traditional financial system.

How are big companies storing Bitcoin

Several big companies have invested billions of dollars in Bitcoin, including MicroStrategy, Tesla, Block, Coinbase, Marathon Digital Holdings, Hut 8 Mining, Riot Blockchain, and Galaxy Digital Holdings.

Now, how are these big companies storing their Bitcoin? Here are some common methods and strategies employed:

Third-Party Custodial Services

Many large companies opt to use third-party custodial services that specialize in securely storing cryptocurrencies. These custodians offer advanced security measures and expertise in safeguarding digital assets. Coinbase, for example, provides custodial services to large companies, contributing to its large Bitcoin holdings.

Cold Wallets

Cold wallets refer to offline storage solutions for cryptocurrencies, such as hardware wallets or paper wallets. These wallets are considered more secure than hot wallets (online wallets) because they are not connected to the internet and are, therefore, less vulnerable to cyber-attacks. Some companies may choose to store their Bitcoin in cold wallets, keeping their private keys secure in bunkers or safes.

Multi-Signature Transactions

Large companies often require multiple signatures for transactions involving their Bitcoin holdings. This adds an extra layer of security and helps prevent unauthorized access or fraud. This process typically involves multiple executives or employees, each holding a portion of the seed phrase or private key.

Regular Transfers to New Cold Wallets

To further enhance security, some companies transfer their Bitcoin holdings to new cold wallets periodically. This practice helps reduce the risk of a security breach and ensures that their Bitcoin remains safely stored.

Insurance and Backup Solutions

Recognizing the volatile nature of cryptocurrencies, some companies insure their Bitcoin holdings. Additionally, they may employ backup solutions to protect their investments in case of unforeseen events or technical failures.

Bunker Storage and Security Measures

Some companies may opt for physical security measures, such as storing critical information, including seed phrases, in underground bunkers with robust security protocols. This adds an extra layer of protection for their Bitcoin holdings.

Diversification

Some companies, particularly those in the cryptocurrency mining industry, may diversify their holdings by investing in multiple cryptocurrencies. For example, Riot Blockchain shows interest in Bitcoin, Bitcoin Cash, and Litecoin.

In summary, large companies utilize a combination of third-party custodial services, cold wallets, multi-signature transactions, regular transfers, insurance, advanced security measures, and diversification to securely store their Bitcoin holdings. These strategies help protect their investments and mitigate the risks associated with the volatile nature of cryptocurrencies.

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