update 20 October 2021

Blockchain Analytics Firm Adds Bitcoin To Its Balance Sheet

Chainalysis – a commonly used blockchain data company – recently invested in an unspecified amount of Bitcoin. The investment comes as Bitcoin’s price creeps ever closer to all-time highs and surpasses its market cap record from May.

Chainalysis Plans to HODL

The data provider announced its latest investment in a blog post today and simultaneously confirmed a new partnership with NYDIG. NYDIG is a Fintech service provider for banks, corporations, and institutions. The financial company has allowed Chainalysis to add Bitcoin to its balance sheet and provide custody for the digital asset.

Chainalysis claims that its recent purchase through NAYDIG establishes its long-term investment strategy. “Chainalysis is laser-focused on its commitment to building trust in cryptocurrency as a digital asset, and we are thrilled to be adding Bitcoin to our corporate investment portfolio,” said Michael Gronager, CEO of Chainalysis

Nate Conrad, Head of Asset Management at NYDIG, believes in Chainalysis’s dedication.

“Our expanding partnership with Chainalysis is a mutually beneficial relationship. Chainalysis has long been building trust in the digital asset ecosystem, and this investment shows their belief that bitcoin is a sound investment for the future. We are happy that they trusted our platform to safeguard their assets.”

Besides Bitcoin’s ascending price, Chainalysis may aim to receive Bitcoin exposure depending on its on-chain metrics. Analysis shows that when users hold a more significant percentage of Bitcoin for a long period than ever before, its price surges.

Furthermore, the currency’s recent climb appears to be institutionally driven, judging by the plethora of high-value buys happening on-chain. For example, two weeks ago, a mystery buyer appeared to purchase $1.6 billion in Bitcoin. This made the price climb thousands of dollars within minutes.

Growing Institutional Bitcoin Investment

With the latest investment, Chainalysis joins a growing list of institutional investors seeking exposure to Bitcoin. In February, Tesla bought $1.5 billion worth of Bitcoin, which equaled about 43 000 BTC at the time of purchase.

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Furthermore, Microstrategy has made multiple purchases of 5 to 10 thousand BTC at a time this year. Michael Saylor – the company’s CEO – asserts that he doesn’t plan to sell the asset for ten years. He also predicts that the recent approval of a Bitcoin ETF will bring billions of dollars from other institutions into the support. As a result, organizations once limited by their internal charters directly purchasing BTC have permitted ways to gain exposure.