Grayscale Buying Bitcoins 54% Faster than Mining in 2021
The Grayscale digital asset manager is on a massive Bitcoin buying spree in the last 16-days. They have snapped up over 40,000 BTCs in the last half-a-month (since January 13, 2012, to be precise).
The crypto analytics company Glassnode’s CTO, Rafael Schultze-Kraft, has noted this tremendous accumulation by Grayscale. He also noted that till the beginning of 2021, 26,000 Bitcoins have been mined. This makes the accumulation of Bitcoin by Grayscale 56% faster than the new BTC supply in 2021 till now.
Rafael also said that Grayscale’s major BTC buying was done in the last 2-weeks. This means that they have accumulated 170% more BTCs than they were mined during the same period of time. He tweeted:
“Bitcoins mined in 2021: ~26,000 BTC
Grayscale holdings in 2021: +40,000 BTC
That’s who you’re selling to, when you’re selling now.
If the New York-based Grayscale Investments, LLC keeps buying Bitcoins at this massive pace then will accumulate 912,500 BTCs (which is equivalent to around 5% of the circulating supply) by 2021-end. To keep it in perspective, this trusted digital currency investing and cryptocurrency asset management company had purchased over US$5-billion worth of Bitcoin in 2020. In the 4th quarter of 2020, the firm bought around US$251-million worth of Bitcoins, on-an-average, per week. Grayscale currently has more than US$20-billion of assets under management.
Rumors say that their BTC purchase has a significant effect on the price of Bitcoin. In fact, within 48-hours of them resuming their massive Bitcoin buying, the BTC price against the US Dollar (BTC/USD pair) jumped by around 20%. However, since January 18, 2021, the price of Bitcoin has fallen from the US$35,000-level to US$34,000-level, even when the New York-based company continued accumulating BTC.