The Bitcoin price has continued to rise in the last few hours and has broken the $12,000 mark. Analysts 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 adopting Bitcoin, like Bit Digital Inc.
Bit Digital Inc. invests in Bitcoin
U.S.-based mining company Bit Digital, Inc. has invested more than $10 million in Bitcoin, buying about 1,000 additional BTCs. Bit Digital, Inc. started operations in February of this year and is listed on the NASDAQ. The company thus joins a long list of listed firms that have included Bitcoin in their portfolio as a reserve currency.
In a new press release, the company has published its financial results for the first half of 2020 and has once again notably increased its profits. As a result, Bit Digital, Inc. bought 100 new high-performance MicroBT M21S Bitcoin (BTC) miners last month. As a result, the hash rate 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 increasing trend. Most recently, Square bought Bitcoins worth more than $50 million, investing just under 1% of the company’s assets.
MicroStrategy also invested in Bitcoin, adopting 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 ready 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 of 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 technical issues, etc. You’re gonna think about the team you’re gonna build a relationship with them…”
Grayscale leads the institutional investors. The firm had recently bought three times the number of Bitcoins that the Miners could produce in the same time. This trend will continue according to industry experts and could lead to a rising Bitcoin price.
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