BTC Large Position Institutions’ Profits and Losses at a Glance Some Making a Floating Profit of 800 million USD, While Others Still in Losses

Insights into the Profits and Losses of Major Institutions Holding Large BTC Positions Some Raking in 800 Million USD Floating Profit, Others Still in the Red

Who has made substantial profits? Who is still in the red?

Original author: Loopy Lu

In recent times, the cryptocurrency market has seen a significant rise. With a strong bullish sentiment in the market, the price of Bitcoin briefly surpassed $35,000 and is currently hovering around that price.

While retail investors are cheering for the rise of BTC, let’s shift our focus back to the “big players” in the market – institutional investors.

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After this significant surge, let’s see how the investment positions of traditional institutions, who once brought joy to the cryptocurrency market, have fared. Are their holdings profitable or at a loss?

According to Coingecko data, there are currently 28 publicly listed companies globally that hold Bitcoin, with a total of 239,494 BTC, worth approximately $8.1 billion.

In addition to publicly listed companies, sovereign nations are also alternative “investors” in cryptocurrencies, holding large amounts of Bitcoin either voluntarily or involuntarily (due to legal reasons), with El Salvador being the most well-known.

The following summarizes the Bitcoin holdings of mainstream institutions and countries:

Among the 28 listed companies, 16 of them hold more than 500 BTC. Additionally, 4 sovereign nations also hold more than 500 BTC.

United States Government

The US government is one of the most notable entities among the Bitcoin whales. As a holder, it is neither a cryptocurrency investor nor a financial institution, but unnoticed by many, the US government has become a leading Bitcoin billionaire in the crypto world, and interestingly enough – it doesn’t care about the ups and downs of this digital currency.

Jarod Koopman, the director of the Cybercrime Investigation Division of the US Internal Revenue Service, publicly stated, “We don’t play the market. We set it up based on our processes.”

Unlike other whales who accumulate Bitcoin through purchases, the US government’s Bitcoin holdings mostly come from confiscated income.

Just from three recent seizures, the government’s treasury has gained over 200,000 BTC. Previously, the US government had sold approximately 20,000 BTC, and every “liquidation” by the government has caused turbulence in the crypto market.

Coingecko shows that the US currently holds over 207,000 BTC, worth about $7.19 billion. In comparison, the renowned Bitcoin “enthusiast” MicroStrategy currently holds only 158,000 BTC.

MicroStrategy

Paper profits: Approximately $816 million (17.4%)

MicroStrategy is the earliest US-listed company to buy Bitcoin in large quantities and also the largest US-listed company holding Bitcoin. From August 2020 to present, MicroStrategy has announced 28 BTC purchases, accumulating a total of 158,245 Bitcoins at an average holding price of $29,582.

The reason this company is well-known is not just because of its large quantity of Bitcoin purchases, but also because of MicroStrategy’s “madness” for Bitcoin. Since their purchase, the company has never sold any BTC, their diamond hands have endured both bull and bear markets.

Coingecko data shows that the BTC purchased by the company has gained a floating profit of $815,584,823, about $816 million, representing a 17.4% profit.

Since MicroStrategy’s first Bitcoin purchase in August 2020, Bitcoin has risen by 147% during this period. The S&P 500 index has risen by 26%, the Nasdaq index has risen by 18%; Gold has fallen by 3%, Silver has fallen by 19%, and bonds have fallen by 24%. Undoubtedly, Bitcoin is the best-performing asset class during this period. MicroStrategy’s diamond hands have achieved impressive returns.

Besides their diamond hands, MicroStrategy is also known for the “mystical” impact of their buying behavior on the market.

After each purchase, there are often bearish voices on social media – “Whenever MicroStrategy buys, the market is about to crash.”

Odaily Planet Daily has also reviewed MicroStrategy’s 28 BTC purchases to explore whether there is a connection between MicroStrategy’s announcement of buying BTC and the market price.

Tesla

Floating Profit: about $364 million (8.5%)

If you mention the most influential “man” in the cryptocurrency market, all investors probably have only one option – Tesla CEO, SpaceX CEO, and self-proclaimed “Dogecoin CEO” Elon Musk.

Whenever Musk makes a “call”, the market experiences strong volatility. And Musk not only makes his own “calls”, Tesla, led by him, also deeply participates in the cryptocurrency market, buying a large amount of Bitcoin.

In mid-October, Tesla released its latest financial report. The report showed that the company did not buy or sell any Bitcoin in the third quarter, marking the fifth consecutive quarter with unchanged holdings.

Coingecko data shows that Tesla holds approximately 10,500 Bitcoins, with a market value of about $364 million.

Bitcoin Mining Companies

Marathon Floating Profit: about $461 million (144%)

Unlike other companies mentioned in this article that engage in cryptocurrency speculation, mining companies are a rather special presence in institutional holdings. For example, Marathon and Hut 8 both adopt a business model of self-mining and long-term investment in BTC.

They don’t rely on purchasing large amounts of Bitcoin, but rather a significant portion comes from their own production. It is precisely because of this that their Bitcoin holdings have a much lower cost compared to other companies. In terms of return on investment, Marathon enjoys a whopping 144% return, ranking first among publicly listed companies in terms of Bitcoin returns.

Marathon was registered in Nevada in 2010 under the name Verve Ventures, Inc. The company purchased digital asset mining equipment in 2017 and established data centers in Canada for mining digital assets. However, the company ceased operations in Canada in 2020 and merged all its operations in the United States. Since then, the company has expanded its Bitcoin mining activities in the United States and internationally. On March 1, 2021, the company changed its name to Marathon Digital Holdings, Inc.

Currently, the company’s main business is self-mining Bitcoin. Their operating strategy involves financing the purchase of mining machines and deploying mining farms, using the cash operating costs generated from production to hold Bitcoin as a long-term investment.

Hut 8, on the other hand, is a Bitcoin mining company based in Canada. The company primarily focuses on Bitcoin mining through the use of advanced hardware and data center resources, and is one of the largest publicly traded Bitcoin mining companies in North America. In addition to mining operations, Hut 8 also provides other cryptocurrency-related services and solutions, such as high-performance computing.

Hut 8 typically sets up its mining facilities in areas with lower energy costs, such as some remote locations in Canada, to reduce operating costs and improve efficiency. This allows the company to remain competitive in the highly competitive cryptocurrency mining market.

Another interesting data point is that despite Bitcoin’s recent massive returns, Bitcoin mining stocks have outperformed Bitcoin in terms of returns.

According to data from CoinGecko, except for Argo Blockchain and TeraWulf, all cryptocurrency mining stocks have had higher returns than Bitcoin since the beginning of the year, averaging around 150%, while Bitcoin’s return is 84.61%. This also reflects the market’s positive sentiment towards Bitcoin from another perspective.

Meitu

Paper Loss: Approximately $16.86 million (-34.1%)

Meitu is the only Chinese company mentioned in this article. Currently, its holdings of BTC and ETH have accumulated a loss of $16,855,368.

Last month, Meitu released its 2023 mid-year financial report. The report showed that in the first half of this year, Meitu’s revenue reached HK$1.261 billion, a year-on-year growth of 29.83%; net profit was HK$151 million, a year-on-year growth of 320.4%; shareholders’ net profit reached HK$228 million, turning a loss into profit compared to the same period last year, and exceeding the previously forecasted range of HK$220 million to HK$265 million.

The company’s cryptocurrency investment has incurred a book loss of approximately HKD 670 million. However, due to the market recovery this year, there has been a reversal of impairment of HKD 186 million.

As early as 2021, Meitu Inc. had purchased 31,000 ETH and 940.89 BTC. The company has been holding onto these cryptocurrencies and stated, “The group has no plans to buy or sell any cryptocurrencies other than those in connection with its cryptocurrency investment plan.”

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