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The Top 7 Cryptocurrencies Promoters of 2021
A decade into their existence, cryptocurrencies are starting to come into their own. For long shunned as a fad that would pass with time, they’ve withstood the skepticisms to gain currency in financial conversations. Today, they attract the attention of individual citizens and corporations that had dismissed them before.
2021 has witnessed a significant jump in the crypto holdings of fortune 500 companies, with some indicating a willingness to buy further into the sector. The question is, which companies have been the biggest Promoters Of cryptocurrencies in 2021? Again, what’s been their motivation, and what’s the impact of this move to the crypto sector? Today we unveil the big crypto pushers of the year.
Why are Corporations Buying into the Cryptocurrency Craze?
The above is just a snippet of corporations that are increasingly adopting cryptocurrencies. Barring a significant shift in the trend, it’s fair to assume that more of them will be joining the crypto bandwagon. But what’s their motivation? A look into the statements these players have put out when announcing their shift to cryptos helps us understand their reasons why:
- Their leadership believes in cryptocurrencies- Tesla’s Elon musk, Microstrategy’s Michael Saylor, and Squares’ Jack Dorsey have never hidden their love for digital assets.
- They see cryptocurrencies, especially Bitcoin, as a means of hedging against monetary debasement and inflation.
- Customer demand is pushing companies to their adoption.
- There’s an easing of government objections to cryptocurrencies.
- Cryptocurrencies give them more options than fiat currencies; for instance, they allow immediate and accurate sharing of revenue information; therefore, transparency.
- Adopting digital assets puts them in the pole position to embracing the digital financial future.
- Crypto increases access to new capital and liquidity pools by traditional tokenizing investments and new classes of assets.
Companies that are the Biggest Promoters of Cryptocurrencies in 2021
As indicated above, the corporate world is catching the crypto bug too. Several companies have joined in the cryptocurrency frenzy and, in so doing, helped to popularize the assets further. Here we look at some of the ones that stood out as significant pushers of cryptocurrencies. It’s a random list of the players, not necessarily an indicator of their ranking in the endeavor.
Best known for electric vehicles, Tesla announced its entry into the crypto space early this year. In an SEC deposition, the firm stated that it had acquired Bitcoin(BTC) worth $1.5Billion. It would also start accepting payments in BTC.
Musk would later take to Twitter, affirming that he thought BTC was a good thing and supported it. Tesla’s and Musk’s actions pushed BTC up 40%. However, in a quick reversal, Musk would announce that Tesla had suspended accepting BTC for payments. His gripe was that BTC mining is harmful to the environment. That action led to a plummeting of BTC prices and the general crypto market.
Square, the digital payments platform, has a long-running relationship with Bitcoin. Its CEO Jack Dorsey is an avowed crypto lover and proponent. His firm’s foray into crypto dates back to October 2020. Then Square bought BTC worth $50 million. In February this year, it would top its holdings by acquiring an additional $170 million worth of BTC.
However, Dorsey has been vocal in campaigning for crypto and especially BTC adoption through different platforms.
Besides leading in the development of business intelligence software, MicroStrategy has found love in the crypto sector. Today the firm owns more than 100,000 BTC with a value exceeding $3Billion.
The firm’s splash into cryptocurrencies dates back to August 2020, when it bought BTC worth $250 Million. It would go on to purchase an additional 19,452 BTC worth $1.026 billion in February. Moreover, it has further increased its holding with $489 million spent on 13,005 BTC tokens.
MicroStrategy’s push into crypto draws from its CEO Michael Saylor’s professed love for BTC. He uses Twitter, where he has a cult-like following, to evangelize crypto adoption.
Marathon Digital Holdings
It’s no surprise that Bitcoin mining company Marathon Digital would have a significant BTC interest. Under its operations, it holds 5,784 BTC worth an estimated $184 million.
Initially a patent-holding company, it later dove into mining cryptocurrencies. In January, it bought BTC worth $ 150 million. Currently, the company is pushing to be America’s most considerable BTC mining concern. It intends to achieve this feat by producing between 50 and 60 BTC a day using more than 103,000 miners.
Galaxy Digital Holdings
Digital asset management company Galaxy Digital Holdings is another visible promoter of cryptos. The company defines itself as the bridge between crypto-assets and the institutional world.
According to bitcointreasuries.net, Galaxy Digital Holdings manages 16,400 BTC that’s worth slightly over $522 million. Its interests include the Galaxy Bitcoin Fund, Galaxy Ethereum Fund, and closed-end mutual funds.
Grayscale is a leading crypto asset management farm with interests spanning the crypto world. Its premier product, the Grayscale Bitcoin Trust, holds over 650k Bitcoin and has up to $ $24.1 billion in Assets Under Management (AUM).
Another of its good products, the Grayscale Ethereum Fund, on its part, holds over $7 Billion in AUM. In total, Grayscale oversees an excess of $32 billion in AUM. In addition, it has announced plans to rope in an additional 13 cryptos to its fold.
Coinbase is a leading crypto exchange. It’s also the first exchange to list on the Nasdaq exchange in the US.
Its listing created a buzz in the crypto space, with many hailing it as critical towards mass adoption of cryptos. At the time, it disclosed that it held BTC worth $ 230 million. However, the figure has considerably dropped to stand at $143 million or 4482 BTC.
How will Corporate Entry Affect the Crypto Market?
So how will this entry of corporate players affect the crypto market? One thing is evident. Their entry has bumped assets across the board to new heights. Bitcoin was the greatest beneficiary of this touching historic heights before facing a tumble.
Increased corporate entry will encourage more individuals to demand cryptos. Big money going into the sector shows the confidence that these investors have in it. For the average person who looks up to them for direction in investments, this will be a cue for them to join in.
Cryptocurrencies are gaining a foothold in financial discussions. The entry of big money businesses will enhance those discussions. One area where engagements will increase is in their regulation as we move towards their mass adoption.
The crypto revolution rolls full steam ahead. Nothing best explains this fact than the conversion of hitherto skeptics to their value. Corporate institutions have led the way on that score. Several of them have been the most prominent promoters of cryptocurrencies in 2021.
Their action not only impacts the price of digital assets but also encourages many to enter the space. Moreover, it catalyzes conversation on the future of cryptocurrencies in our lives. Other e.xciting days await.