Cryptocurrency is no longer a bubble. Many financial experts are now in agreement that it is the way of the future. As such, many companies are putting their stake in this digital currency, knowing that their investments may be risky, but they can pay off really big time.
From Elon Musk and Tesla to Coinbase and Warrant Buffet’s group, everyone is investing in cryptocurrency, even cazino online companies. Today, let us look at several of the biggest investments made in the world of digital coins.
Coinbase Investing $500 Million
The chief of Coinbase, Brian Armstrong, said that the company is planning to invest $500 million in cryptocurrency. This decision was approved by the board. On top of this, the company will invest 10% of its profits in cryptocurrency.
This decision is a big step from the company’s current holdings in crypto. Right now, the estimate is that they only own somewhere around $365 worth of crypto assets.
Armstrong said in a tweet that they received board approval to invest $500 million in addition to their balance sheet. He further said that their plan to invest 10% of all their profits in crypto would keep on growing as the crypto world matures.
Tesla Invests $1.5 Billion in Bitcoin
In early 2021, Tesla made an announcement that they filed in SEC. They bought $1.5 billion worth of bitcoin. It was a shock, but what dropped people’s jaws was when they said that they would start accepting bitcoin as payment for their cars.
Tesla CEO Elon Musk received flak for this action. Many pundits said that it was this decision that made bitcoin prices go up. He had several tweets that people claim to have pushed bitcoin prices up.
Tesla did this because it wanted to diversify its assets. Particularly, the shareholders want to use their cash for something that will give them maximum returns.
Tesla is the first automaker to accept bitcoin. With this move, Tesla will have a better position in terms of liquidity of their assets once people buy cars from them with bitcoin.
Barry Siebert Invests in 165 Blockchains
Barry Siebert is the founder of Digital Currency Group. This same group owns Grayscale Bitcoin Trust, Coindesk, and also Coinbase.
The founder is a believer in cryptocurrency, and as CEO of Digital Currency Group, he made it possible for the company to invest in more than 165 blockchains. The aim here is to accelerate the development of the financial system.
What they want is to build and support blockchain companies. As such, the coins will have more value because if financial companies use them, the typical consumer will use them too.
Michael Saylor Invests $84 Million
Michael is the co-founder and CEO of MicroStrategy. He has a firm belief that cryptocurrency is the next biggest thing. As of December of 2021, MicroStrategy invested $84 million in bitcoin. At that time, they purchase 1,434 bitcoins. Now, they are holding 122,478 bitcoins.
MicroStrategy is a company that has been around since 1989. It is a business intelligence (BI) company, and it offers not just BI, but also software and cloud-based services.
What they do is create software that analyzes internal and external data that will eventually help leaders make a decision.
Michael Novogratz Buys $62 Million NFTs
Michael used to be a hedge fund manager at Goldman Sachs. He is an outspoken commentator about bitcoin and its price action. He is the founder of Galaxy Digital Holdings. What they do is make a broker-dealer offering in the blockchain assets.
In the third quarter of 2021, the company made a hefty investment in non-fungible tokens. They invested $62 million in it. NFT is a little bit different from crypto as these are digital assets. However, many NFTs are backed by crypto assets.
In its financial report, Galaxy said that it has $19 billion in unrestricted cryptocurrency holdings. A little more than $608 million is in managed funds, and about $160 million is in General Partner interest.
The estimate is that the company has more than $768 million in bitcoin assets as of 2021, and they will probably scale higher.
Is Cryptocurrency a Good Investment?
Yes, it is a good investment. Like all investments, it is speculative. While crypto coins do provide value by making transactions faster, they are also subject to highly volatile fluctuations.
Many companies are investing in cryptocurrency, and this includes anything from auctions to gaming companies. They accept digital coins as payments, and they convert that into cash once the cryptocurrency asset has already increased in value.
Like all volatile investments, it is a good idea to be cautious. There are many who think it’s best to diversify cryptocurrency assets. As always, the golden rule in investing is not to put all your eggs in one basket.
Bitcoin is currently the reigning cryptocurrency. There are billions upon billions of dollars piled on it—and its drop will cause an economic downturn.
Despite the risks and uncertainties, there are many rich people and celebrities who are banking on the success of cryptocurrency. Financial advisors are cautious about it, but they all agree that cryptocurrency is here to stay.