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Grayscale, MicroStrategy Could Be Driving Bitcoin Liquidity Crisis Closer with Massive BTC Acquisitions

Wed, 12/16/2020 - 09:32
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Yuri Molchan
As Grayscale and MicroStrategy increase their Bitcoin holdings, CoinCorner exchange CEO reckons this could be driving Bitcoin liquidity crisis closer
Grayscale, MicroStrategy Could Be Driving Bitcoin Liquidity Crisis Closer with Massive BTC Acquisitions
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Major companies Grayscale and MicroStrategy have been leading the expansion of Wall Street into Bitcoin this year; now the CEO of the U.K.-based CoinCorner exchange again tweeted that a liquidity crisis for Bitcoin could be near.

Grayscale, MicroStrategy helm Bitcoin adoption by Wall Street

As per data shared by senior Messari research analyst Ryan Watkins, the business software giant MicroStrategy now holds 40,824 Bitcoins in its storage.

This BTC amount is worth a staggering $797 million and the company has made a profit of $322 million, having put $475 million in the flagship cryptocurrency.

Image via Twitter

This allocation of funds into the world's biggest digital asset was inspired by the company's CEO Michael Saylor, who is a Bitcoin holder himself and recently turned into another "Bitcoin Jesus."

This title used to belong to Roger Ver until he chose to "defect" from the Bitcoin camp and join Bitcoin Cash supporters.

Recently, MicroStrategy completed raising shareholders' funds to acquire another lump of Bitcoin. The company has raised an eye-popping $650 million (targeting a hundred million less initially) from investors.

Watkins also tweeted:

The above doesn't even include MSTR's just completed $650mm convertible note raise whose proceeds will be used to buy BTC. This will take MSTR's total BTC holdings well over $1 billion.

Many have started trolling MicroStrategy, saying that it is about to turn into a Bitcoin exchange-traded fund (ETF).

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Grayscale gains 115,236 Bitcoin in Q4

The CEO of the U.K.-based crypto exchange, Danny Scott, believes that a Bitcoin liquidity crisis could be drawing closer.

In his tweet, he pointed out that Grayscale Investments has laid its hands on 115,236 BTC in Q4 this year, which is equal to $2.2 billion.

Not long ago, Scott also drew the community's attention to the fact that $700 million worth of Bitcoin had been withdrawn from crypto exchanges as users, including financial institutions, are stacking BTC long term in cold storage vaults.

Image via Twitter

Bitcoin market cap is again above $360 billion

At press time, the Bitcoin market cap totals $361,612,549,102. Previously, BTC reached a similar milestone on December 3: $360,933,936,017.

Before thaton Nov. 30Bitcoin reached a new all-time high near $20,000. On that day, the market cap amounted to $364,229,729,426.

However, on Dec. 3 after the rise, the value of this metric suddenly plunged to $347,111,351,136 and managed to recover only on Dec. 15.

Image via CoinMarketCap
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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at