With Bitcoin prices climbing new heights every day, it is no surprise that everyone, including individuals and organisations, is starting to show a keen interest in it. However, getting backed by a single person and major industry giants are two vastly different things.
For instance, a liking for Bitcoin from Elon Musk can cause its price to spike, but an official backing from Tesla will put it one step forward to mainstream acceptance. Domestically a nationwide ban may be looming over Bitcoin, but globally, acceptance of cryptocurrencies has never been higher. Here are five major industry leaders backing Bitcoin.
Major Industry Leaders Backing Up The Bitcoin
1. BNY Mellon
One of the oldest banks in America, BNY Mellon, recently invested in a startup called Fireblocks that specialises in building tools for securely transferring Bitcoins. BNY Mellon plans to become a custodian of digital assets on behalf of institutional investors. And they’ll do so using Fireblock’s technology. According to a recent report, the bank will be service providers to First Trust, an Investment Management firm in Wheaton, Illinois, and the New York-based Skybridge capital as both their ETF (Exchange-traded fund) have recently gone for approval from the United Stated Service Exchange Commission. Upon approval, BNY Mellon will provide digital trading services.
It’s not a surprise, but Tesla has a lot of affinity towards Bitcoin and cryptocurrencies in general. The company’s CEO Elon Musk regularly promotes cryptocurrencies like Dogecoin using his Twitter, single-handedly causing a price hike in the process. However, Tesla recently invested $1.5 billion into Bitcoin, which is around 7% of their total cash in hand. For even better integration, Tesla also allows customers to buy its electric vehicles using Bitcoin. Elon Musk announced the new development a few weeks back and also said that Tesla would not convert Bitcoins into fiat currencies.
The Jack Dorsey led financial payment service Square continues to invest in Bitcoin and its surrounding industry quite frequently. Recently it invested around $100,000 each into developing new tools to mine Bitcoin. Initially, Square had invested around %50 billion in Bitcoins. Following that, the company invested triple that amount, around $170 million, to buy 3,318 Bitcoins. Each costing $51,236. Similar to Tesla, Square also plan to hold cryptocurrency.
If you think Tesla is the first company to adopt Bitcoin, well, think again. Last year, the US firm MicroStrategy became the first public company to invest in Bitcoins. The company recently invested around $15 million to buy 253 Bitcoins. According to the latest form 8-K filing, the company holds 91,579 Bitcoins which equals $5.5 billion as of 10-April-2021 when BTC is over $60,000.
5. Galaxy Digital Holdings
Owned by the billionaire Mike Novogratz, Galaxy Holdings serve as a gateway for institutions to deal in crypto. The company provides digital asset service for cryptocurrencies. Recently, its asset management became worth $1.2 billion after launching a Bitcoin mutual fund. Galaxy Holdings is set to record an income of $325 million for the fourth quarter after the value of Bitcoin soared. It also provides Bitcoins for the Purpose Bitcoin ETF, which is one of the handful of approved ETF’s in North America.