Top 5 Bitcoin Investors
Bitcoin is the largest blockchain-based digital asset with a market cap of $473.7 billion as of February 19, 2023. It is very popular among cryptocurrency enthusiasts and speculative investors. Several wealthy business owners and entrepreneurs have invested heavily in this digital asset. Here are some of the top Bitcoin investors, compiled from financial reports, blockchain sources, and media.
The central theses
- Barry Silbert is the founder of Digital Currency Group, which invests in popular cryptocurrency and blockchain companies.
- Michael Saylor is the CEO of MicroStrategy, which invests heavily in Bitcoin.
- Cameron and Tyler Winklevoss are believed to be the first bitcoin billionaires, reportedly owning around 70,000 coins.
- Elon Musk’s Tesla company bought $1.5 billion worth of Bitcoin in 2021
- Michael Novogratz founded Galaxy Digital Holdings, a broker-dealer and cryptocurrency and digital asset management company.
1. Barry Silbert
Barry Silbert is the founder and chief executive officer of the Digital Currency Group. The company aims to accelerate the development of the global financial system by building and supporting bitcoin and blockchain businesses. Digital Currency Group has invested in 218 blockchain and cryptocurrency companies.
Other portfolio companies include Genesis, a liquidity provider — a company that funds a pool of cryptocurrency — for buyers and sellers of cryptocurrency in the over-the-counter market. Digital Currency Group is also investing in Grayscale Investments, which manages the Bitcoin Trust (GBTC), an investment vehicle that owns $15.6 billion worth of bitcoin as of February 19, 2023.
The co-founder and CEO of business intelligence firm MicroStrategy, Michael Saylor, believes that cryptocurrency is the next biggest investment. MicroStrategy increased its bitcoin holdings in 2022 by purchasing 8,813 bitcoins at an average price of $32,670. The company holds a total of 132,500 bitcoins as of February 19, 2023.
The total value of a person’s bitcoins changes with the market price, so an investor’s cryptocurrency portfolio may not always have the same dollar value.
3. Tyler and Cameron Winklevoss
Cameron and Tyler Winklevoss are investors in several cryptocurrencies and blockchain-related companies, most notably the private exchange Gemini. They are believed to be the first to have achieved billionaire status by investing in Bitcoin and reportedly own about 70,000 coins according to Forbes.
The Winklevoss twins launched the Gemini exchange in 2015. The company enables investors to buy, sell and store their digital assets. Gemini launched bitcoin futures on the CBOE Options Exchange (CBOE) in December 2017.
Besides Bitcoin, the brothers are heavily invested in Ethereum, although they haven’t revealed their exact holdings.
4. Elon Musk
Elon Musk is the CEO and co-founder of Tesla (and other companies). Tesla designs and builds electric vehicles and clean energy products. As an innovative company at the forefront of technology, it should be expected that it would own cryptocurrency – Tesla bought $1.5 billion worth of bitcoin in 2021 to accept as payment. As of its 2022 annual report, the company has converted 75% of its digital assets and reduced its holdings to $191 million.
Michael Novogratz, a former hedge fund manager at Fortress Investment Group and a partner at Goldman Sachs, is a frequent commentator on Bitcoin price action. He is the Founder, CEO and Chairman of Galaxy Digital Holdings, a broker-dealer offering a full range of blockchain-related asset services.
Galaxy Digital Holdings has interests in nearly every digital asset that has value, from Bitcoin to NFTs.
Galaxy Digital focuses on digital assets; in Q3 2021, it acquired $62 million worth of companies related to non-fungible tokens (NFT). NFTs are digital assets that use blockchain technology for security and ownership identification. They became popular in 2021 after digital art secured by NFT technology sold for millions of dollars.
Galaxy reported approximately $2 billion in assets under management in its third-quarter 2022 results, with $875 million of those assets used in its fund products.
How do beginners buy bitcoins?
You can buy bitcoin on multiple exchanges such as Coinbase, Kraken, Binance or Gemini.
What are the dangers of Bitcoin?
Loss of capital is the biggest risk when investing in Bitcoin as the price is very volatile. You can win or lose thousands of dollars in a day.
How to convert bitcoin to cash?
You can turn bitcoin into cash by selling it on a cryptocurrency exchange and transferring the money to your bank account.
The final result
Bitcoin and cryptocurrencies are volatile assets, but many people continue to invest heavily in them in hopes that they will return to and surpass their previous highs.
Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is very risky and speculative, and this article is not a recommendation by Investopedia or the author to invest in cryptocurrencies or other ICOs. Because each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. At the time of writing this article, the author owns 0.001 Bitcoin.
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