Grayscale Continues Buying More Bitcoin Than What’s Being Mined

Grayscale Continues Buying More Bitcoin Than What’s Being Mined

By Abhimanyu Krishnan | News | 26 Jun 2020


Asset management firm Grayscale Investments purchased 19,879 Bitcoin (BTC) this week, according to analyst Kevin Rooke. Worth roughly $184 million, the firm now has a total of 400,000 BTC in its coffers. Rooke also added that the rate at which Grayscale has been purchasing Bitcoin is roughly at 280% of what is being mined.

Grayscale has greatly increased its position in the market this year, with the firm having bought more than double the amount of Bitcoin (BTC) than was mined this week - a number which stands at 7,081 BTC. Its interest in Bitcoin was noted in late May, when it had purchased 19,000 BTC in just a few weeks. 

Grayscale sells Bitcoin at premium price for its investors, who pay the extra for the custody services that the firm offers. It currently offers 0.00096001 BTC per share, with roughly $3.7 billion worth of Bitcoin under management. The firm reported that it had invested nearly $500 million in Bitcoin in Q1 2020.

It has also doubled down on Ethereum, having purchased almost half of all the Ethereum (ETH) that has been mined in 2020. Investors were paying premiums of over 500% for the firm’s services. 

Grayscale also confirmed that institutional investment was at a high, with more inflow in Q1 2020 than the previous two years combined.


Abhimanyu Krishnan
Abhimanyu Krishnan

Technophile, cryptocurrency enthusiast and journalist.


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