Institutional Bitcoin (BTC) investment has been ramping up over the past couple of months, starting with $425 million of Bitcoin investments from Microstrategy, followed by a $50 million Bitcoin investment from Square.
The news today is that another significant institutional Bitcoin investment has just rolled in, with Stone Ridge Holdings Group, a firm which manages over $10 billion of assets, buying 10,000 Bitcoins worth over $110 million at this time.
Notably, Stone Ridge Holdings Group purchased Bitcoin as part of its treasury reserve strategy. In fact, Stone Ridge Holdings Group says that Bitcoin is necessary due to fiat money printing becoming unchecked, with the Federal Reserve balance sheet surging by $3 trillion since the beginning of 2019. Also, Stone Ridge Holdings Group notes that yields are approaching zero and becoming negative, making bonds an unattractive investment option.
Basically, Stone Ridge Holdings Group sees that fiat money is depreciating due to money printing, and is using Bitcoin as a way to hedge risk in the event that fiat hyperinflation begins.
Zooming out, it is a big deal that a serious asset management firm like Stone Ridge Holdings Group has purchased over $110 million of Bitcoin, and it could cause more asset management firms and more institutional investors to follow suit.
Essentially, a chain reaction of Bitcoin institutional investment appears to be starting, and this could ultimately help push Bitcoin back to its all-time high of $20,000 and beyond. Indeed, each one of these institutional investments is enough to push the market upwards, since the Bitcoin market is still relatively small at this time, and even a $100 million Bitcoin investment can cause a significant upward price movement.