$43 million worth of Bitcoin, but this company refuses to sell it

If you had $43 million worth of Bitcoin, would you sell it all at once or keep it?

According to George Kikvadze, vice chairman of Bitcoin mining company Bitfury, the company received offers from multiple investors and asset management ( AUM ) funds in the past week after the price of Bitcoin broke through the $800 mark. In response, Kikvadze firmly rejected their offers and said that the company will not sell its Bitcoin holdings for the time being.

Many analysts and experts, including Vinny Lingham, CEO of Civic and angel investor, have predicted that once the price of Bitcoin breaks through $800, it will accelerate to $900. Such predictions, as well as the huge demand for Bitcoin in China, have forced traditional investors to turn their attention to Bitcoin.

Rejected Bitcoin transactions worth $25-43 million

In the 24 hours since Bitcoin’s price successfully surpassed the $800 mark, Kikvadze and the rest of the Bitfury Group have received bids from AUM funds and high-net-worth investors for purchases ranging from 30000 BTC to 50000 BTC . At press time, 50,000 BTC is equivalent to $43 million.

Some in the Bitcoin community believe that after AUM funds and other investors tried unsuccessfully to buy coins from miners, they may have turned to exchanges to buy directly.

While traditional Bitcoin exchanges and trading platforms are a viable way for individual traders and investors to acquire Bitcoin, they are inefficient for investment firms or large enterprises.

For example, Korbit, South Korea’s largest bitcoin exchange, which is backed by some very well-known investors and partners (including SK, a telecom company with a market value of $15 billion, and SoftBank, an investment company with a market value of $74 billion), has a withdrawal or trading limit of only $ 17.1万.

Therefore, for investment companies or enterprises like AUM funds, they will choose to buy Bitcoin directly from mining companies. It would be inefficient to conduct a $43 million order on a Bitcoin exchange with a transaction limit of $100,000 to $200,000.

Bitfury's decision to reject all offers is incomprehensible to ordinary people. In its view, Bitcoin is a global currency and a way to store value, and in the current environment of global economic instability and increased financial regulation, converting Bitcoin into cash or any other form of assets is not in their best interest.

What’s more, the demand for cash is declining rapidly, with more than 39% of the world’s population choosing alternative financial services over cash or fiat-based systems (such as bank accounts and credit cards).

From this news, we may be able to see that large companies and investment companies have begun to try Bitcoin as an alternative asset and global store of value.