Crypto Custodian, BitGo, Has Been Holding Bitcoin on its Balance Sheet Since 2014
BitGo, a digital asset infrastructure company, holds $250 million worth of Bitcoin on its balance sheet.
Company Chief Executive Officer Mike Belshe revealed this in a recent interview, further sharing that they have been holding Bitcoin in their balance sheet since 2014.
“A venture-backed firm taking a position on something other than U.S. dollars for their investment money is a very controversial thing.”
“If the founders came to the investors and said, ‘Hey, I’d like to take the cash you gave us and put it in gold, the answer would be, ‘No, you shouldn’t do that.’”
Recently, cryptocurrency exchange Coinbase revealed in its S-1 filing that the company has been holding $130 million worth of Bitcoin in its balance sheet, making 55% of its modest crypto treasury. The company also holds $24 million (10%) in Ethereum, $49 million (20%) in USDC stablecoin, and $34 million (15%) in other altcoins.
BitGo CEO “strongly” recommends other companies to invest “heavily” in Bitcoin as well, saying pension funds and insurance funds allocation 3% to 5% of their cash reserves to the digital currency would make other companies consider the same.
And they are expecting the same in the gloomy bond market, which even if sees an uptick like happened last week, Belshe expects the stocks markets to take a hit and people to invest in Bitcoin as a hedge against both the stock and bond market.
As we reported, Coinbase had also been seeing greater trading volumes from institutional participants than from its retail participants for the very first time.
TradeBlock also reported that more than $40 billion in AUM and millions in over-the-counter (OTC) trades are benchmarked across TradeBlock’s different reference rates.
The world’s largest digital asset manager, Grayscale also holds more than $31 billion in its largest investment trust, GBTC.