Giant Bitcoin Investor Reawakens After Over a Decade - Why the Recent Activity?
In the dynamic world of cryptocurrency, several institutions have been building Bitcoin treasuries over the past few years, amassing a total of approximately 3.64 million BTC across various global industries. Notable companies include Dutch firms, Chinese-listed CIMG Inc, and US-based Hyperscale Data, who hold significant amounts of Bitcoin in their corporate treasuries.
Other companies such as Cipher Mining, CleanSpark, Convano, and Cango have also been adding to their reserves. These institutions may seek funds from long-term Bitcoin investors, often referred to as Bitcoin whales, for further expansion or strategic use.
One such Bitcoin whale first acquired 444.81 BTC back in 2012, when each coin was trading for a little over $12. Fast forward to today, and the whale's holdings could be worth nearly $5 billion.
The activity of these long-term Bitcoin whales is closely watched by the cryptocurrency community. Early whales, like the one mentioned above, are known for their shrewd operations in the space. They rarely move coins unless they see opportunity or risk.
Recently, another long-term Bitcoin whale moved a chunk of their $50 million in BTC holdings after nearly 13 years. Doug Colkitt, an early contributor to layer-1 blockchain Fogo and CEO of Crocodile Labs, commented on the event, stating, "when a wallet wakes up after 13 years, it's never random."
Some analysts suggest that these dormant whales may be reactivating to contribute to newly formed digital asset treasuries. A notable transaction occurred in July when a whale sold more than 80,000 Bitcoin, worth over $9 billion at the time. This transaction spooked traders into anticipating potential sell pressure, although most transfers never hit exchanges.
Despite the occasional large transaction, the overall sentiment among investors remains optimistic. Bitcoin was recently trading at nearly $115,000, up about 1% over the past 24 hours and 4% over the past week. In one Myriad market, nearly three in four respondents expect Bitcoin to be trading above $105,000 throughout September.
JP Morgan analysts suggest that investors are becoming fatigued by the trend, but companies adopting the strategy have generated healthy stock price gains. Jeff Dorman, CIO of crypto-focused asset manager Arca, suggested that the trend may link to the growth of treasuries.
It's worth noting that some of the biggest Bitcoin balances are controlled by early adopters who barely touch them. These dormant whales remind us how young Bitcoin still is, even as it continues to revolutionize the financial landscape.
(Disclosure: Myriad is a prediction market and engagement platform developed by Dastan, parent company of an editorially independent Decrypt.)
Read also:
- Industrial robots in China are being installed at a faster rate than in both the United States and the European Union, as the global market for these robots faces a downturn.
- Hyundai N affirms transition to hybrid performance-centric models, initiating with Tucson N
- EAFO Research Uncovers Crucial Elements in Electric Vehicle Adoption within the EU
- Stock markets in India anticipated a moderate opening, influenced by mixed signals from global markets.
