I 5 Companies Banking On Bitcoin

Money 5 Companies Banking On Bitcoin

Here are the five listed companies investing most in buying bitcoin, according to Statista, based on financial statements as of April 1, 2022.

Bitfarms 5,243

Block 8,027

Marathon Digital Holdings 9,373

Tesla 43,200

1. MicroStrategy Bitcoins: 129,218

Enterprise-software maker, MicroStrategy, is the largest corporate investor of bitcoin, with 129,218 bitcoins as of March 31, 2022. In Q2 2022, MicroStrategy bought 481 bitcoins for $10 million at an average purchase price of $20,790 per bitcoin.

By June 30, 2022, MicroStrategy had invested over $4 billion into bitcoin, since first buying the cryptocurrency in Q3 2020. Bitcoin price hit an alltime-high of $68,721 in November 2021. However, a drop this year reduced the value of MicroStrategy’s digital asset holdings to $2 billion in Q2 2022, down from $2.9 billion in Q1 of the same year. This led MicroStrategy to report a $917.8 million impairment charge in the April-June quarter.

In August 2022, MicroStrategy’s co-founder, Michael Saylor, gave up his CEO title, saying he’ll focus more on a bitcoin acquisition strategy after the company posted a loss of over $1 billion due to the second-quarter plunge in the price of the cryptocurrency.

MicroStrategy 129,218

Bitcoins

2. Tesla Bitcoins: 43,200

Tesla revealed in February 2021 that it had bought $1.5 billion worth of bitcoin. The electric carmaker also announced that it might continue investing in cryptocurrency more broadly and begin accepting bitcoin as a form of payment for its products. A shareholder update showed that sales of bitcoin made a $101 million “positive impact” on Tesla’s profitability during Q1 2021. The fair market value of its bitcoin holdings stood at $2.48 billion in Q1 2021 and closed the year at about $2 billion, but the company neither said at what price it offloaded the bitcoins or provided the size of its impairment.

As of the end of Q2 2022, Tesla converted approximately 75% of its bitcoin purchases into fiat currency, adding $936 million in cash to its balance sheet. Billionaire Elon Musk explained, “the reason we sold a bunch of our bitcoin holdings was that we were uncertain as to when the covid lockdowns in China would alleviate so it was important for us to maximize our cash position.” The company held $218 million worth of net digital assets as of June 30, 2022.

3. Marathon Digital Holdings

Bitcoins: 9,373

Las Vegas-based bitcoin miner Marathon Digital Holdings is directly involved in the crypto business. Marathon saw its holdings increase throughout this year. As of January 2022, the company held approximately 8,133 bitcoins with a fair market value of roughly $375.8 million. These included the 4,813 bitcoins it purchased in January 2021 for an average price of $31,168 each. In April, the company increased its bitcoin holdings to 9,373 bitcoins. As of June 30, 2022, its total bitcoin holdings grew to 10,055, which are now held directly after the company unwound its investment in NYDIG Digital Assets Fund III.

4. Block Bitcoins: 8,027

Jack Dorsey’s digital payments company Block, formerly known as Square, started buying bitcoin in October 2020, when it published its bitcoin investment whitepaper. The company said back then that it viewed bitcoin as an “instrument of global economic empowerment.”

In Q4 2020, Block invested $50 million in buying 4,709 bitcoins. It purchased another 3,318 bitcoins at an aggregate price of $170 million in Q1 2021, taking its total holdings to 8,027. As of June 30, 2022, the fair value of its investments in bitcoin stood at $160 million based on observable market prices. The company reported a $36 million bitcoin impairment loss in Q2 2022, citing “broader uncertainty around crypto assets.”

In 2021, Block announced its intention to enter the bitcoin mining business. with Dorsey tweeting in October 2021 that the goal to make this field less complex and more accessible.

5. Bitfarms Bitcoins: 5,243

Bitfarms had 5,243 bitcoin as of March 31, 2022, representing a value of about $244 million. This included 1,000 bitcoins that the Toronto-based firm had bought for $43.2 million in the first week of January 2022, which was the first time it had ever bought bitcoin, with its previous holdings coming only from mining.

In June 2022, the company removed its daily bitcoin production from its balance sheet, cutting its holdings by 47%. The company sold a total of 3,000 bitcoins for approximately $62 million to boost its liquidity, strengthen its balance sheet, and pay off loans, bringing its total to 3,349. It used some of those proceeds to cut its bitcoin-backed credit facility with digital asset bank Galaxy Digital by 42%, down to $38 million. In July, Bitfarms dumped another 1,623 bitcoins onto the market.

The company, founded in 2017, reported 500 new bitcoins mined during July 2022, up 28% from July 2021 and 19% from June 2022. It had 2,021 bitcoins in custody as of July 31, 2022, representing a total value of approximately $48 million.