When bitcoin breaks out of the stratosphere beyond $20,000, Stone Ridge asset management will be sitting on a 10,000 bitcoin position worth a minimum of $200 million.
In Brief
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Stone Ridge has bought $100 million of Bitcoin (10,000 BTC) as part of its treasury reserve strategy.
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Square and Microstrategy also stacked massive amounts of bitcoin this year.
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Institutional ownership of bitcoin is estimated to be 2.8% of the total supply.
10,000 BTC under management
Apparently following in the footsteps of MicroStrategy, Stone Ridge says that it has bought over 10,000 bitcoin, worth about $115 million as part of its treasury reserve strategy.
The acquisition was executed via the New York Digital Investment Group (NYDIG), a company subsidiary responsible for the custody of freshly purchased bitcoin.
NYDIG itself raised $50 million in growth equity funding, which it attributed to the fact that its clientele has increased four-fold. The firm grew out of bitcoin services that Stone Ridge has pioneered since 2017, which include investment, brokerage, treasury and tech.
Institutions own more bitcoin
Co-founder and CEO of NYDIG, Robert Gutmann, said that bitcoin has increasingly become an asset which financial institutions are eager to own, adding that the firm is “better positioned than ever to be the leading provider of Bitcoin solutions.”
Meanwhile, the founder of SRHG and executive chairman at NYDIG, Ross Stevens, revealed that bitcoin is now the “principal component” of the firm’s treasury reserve strategy.
Stone Ridge is just one of many companies which have recently gone down the bitcoin rabbit hole. Indeed, Square acquired $50 million worth of bitcoin just last week, while Microstrategy purchased an astronomical $425 million of bitcoin in September.
Some estimates suggest that corporations now collectively own about $6.5 billion worth of bitcoin, equal to about 2.8% of the entire bitcoin supply; a far cry from a would-be concerning figure.
However, that estimate does not account for crypto exchanges, which have custody over massive amounts of bitcoin – though this figure has been dwindling significantly as holder remove their assets from exchanges. All in all, institutionally-owned bitcoin is definitely larger than the near 3% figure.
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