The recent surge in Bitcoin price to a historic high exceeding $118,000 has resulted in considerable financial gains for institutional asset holders.
Institutional Investments in Bitcoin
According to BitcoinTreasuries data, Strategy holds nearly 600,000 Bitcoins, yielding an unrealized gain of about $28 billion. Having invested over $42 billion, Strategy ranks as the third-largest Bitcoin holder after Satoshi Nakamoto and BlackRock. Strategy keeps its Bitcoins directly on its balance sheet, while BlackRock holds them on behalf of investors. BlackRock’s iShares Bitcoin Trust commenced operations in January last year. Michael Saylor, co-founder and chairman of Strategy, frequently emphasizes that selling is not part of their strategy.
Other Institutional and National Acquisitions
Since 2024, Japanese firm Metaplanet has been aggressively accumulating Bitcoin and currently holds approximately 15,555 Bitcoins, valued at roughly $1.83 billion. Metaplanet reports an unrealized profit of $284 million. El Salvador, which adopted cryptocurrency as legal tender, owns 6,234 Bitcoins, with total asset value rising to about $733 million and paper gains reaching $232 million. This marks a significant recovery from the devaluation experienced in 2022.
Profits for Smaller Companies
Smaller companies have also benefited from the rise in Bitcoin prices. For instance, Semler Scientific followed Strategy’s path last year and currently holds 4,636 Bitcoins, resulting in unrealized profits close to $160 million. Meanwhile, France-based Blockchain Group has amassed 900 Bitcoins, earning approximately $30.5 million. Despite significant gains, there is little indication of major sales. Investors, often termed 'maximalists,' continue to view Bitcoin as a long-term store of value.
The recent surge in Bitcoin prices highlights the potential impact of institutional investments on cryptocurrency markets. The reluctance to sell and long-term perspectives of major investors may bolster market confidence and price stability.
