3 months ago
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Galaxy Digital has allegedly increased its Bitcoin portfolio by acquiring 400 BTC, valued at approximately $23.4 million.
Galaxy Digital, one of the bigwigs of the digital asset and blockchain space, has allegedly increased its Bitcoin portfolio by acquiring an additional 400 BTC, valued at approximately $23.4 million. This major purchase was first reported by on-chain analyst @ai_9684xtpa through a recent post on X. The timing and scale of the acquisition appear to suggest a shift in the firm’s investment strategy, particularly in an ever volatile crypto market.
Galaxy Digital Bolsters Crypto Assets Amid Market Fluctuations
Notably, Galaxy Digital had previously made a large withdrawal of Bitcoin from Binance. Between July 27 and August 2, the company took out 6,950 BTC, worth about $464 million. This withdrawal was executed at an average price of $66,776 per BTC, reflecting Galaxy Digital’s laser focus on capitalizing on favorable market conditions.
However, the company’s approach to its Bitcoin assets has been quite dynamic. Shortly after the major withdrawal, between August 3 and August 6, Galaxy Digital redeposited 2,050 BTC, equivalent to roughly $112 million, back into Binance. This move was part of a broader strategy that involves both the acquisition and redistribution of Bitcoin.
The recent re-acquisition of 400 BTC indicates Galaxy Digital’s continued confidence in Bitcoin’s long-term value despite short-term market fluctuations. The current market value of Bitcoin could mean a potential loss of $24.78 million if the redeposited BTC were sold now. This situation highlights the inherent risks and opportunities in managing large crypto portfolios.
Institutional Investors Go Big on Bitcoin
Galaxy Digital’s strategies in Bitcoin management reflect a broader trend among institutional investors seeking to leverage volatility to their advantage. According to a recent study carried out by The Currency Analytics, the evolving dynamics of institutional involvement in the crypto market shows a positive trend.
Research analyst James Butterfill, whose review was based on 13F filings submitted to the U.S. Securities and Exchange Commission (SEC), submitted that while some institutions are reducing their Bitcoin holdings, others are significantly increasing their investments.
Capula Management, for instance, has expanded its Bitcoin exposure by $470 million. Butterfill also pointed to Avenir Tech/Hong Kong making an even bolder move. That is, by allocating 50% of its portfolio, equivalent to $388 million, to Bitcoin.
The review also mentioned prominent institutions such as Goldman Sachs, Galicia Asset Management, and Ark Investment Management as having increased their Bitcoin holdings recently. Like Galaxy Digital, the recent moves by these institutions signal a continued confidence in Bitcoin’s long-term prospects.
