Google Invests in Digital Currency Group, Holding Company of Grayscale
October was one of the strongest months for Bitcoin thus far. In October, the cryptocurrency climbed 45 percent, setting a new all-time high and sparking a broader rally that saw Ethereum and several other altcoins reach similar milestones. This increase in price and rising usage has attracted some of the world’s largest corporations, like Google and Bank of America, who are now investing hundreds of millions of dollars to catch up with the competition. Microstrategy has increased the vigour of its Bitcoin bet, while Peter Thiel expresses his misgivings about his BTC investment.
The importance of Google’s investment in a cryptocurrency company cannot be emphasised since few organisations have the same level of brand awareness as Google. Google, via its growth fund, known as Capital G, participated in a capital round for the Digital Currency Group, in which it was one of the investors.
Grayscale, the world’s largest institutional cryptocurrency investment vehicle with over $50 billion in assets under management, is owned by DCG, which is also the parent company of Grayscale. As well as BitGo and Blockchain.com, it has made investments in every major firm in the cryptocurrency field, including eToro, the FTX exchange, Kraken, Paxos, Ripple, CoinDesk, and Zcash.
DCG raises capital infrequently, with their most recent round bringing in just $25 million. It has now raised $700 million at a value of $10 billion, bringing the total raised to $700 million. Founder and CEO Barry Silbert (who is not a fan of Dogecoin) claimed in an interview with CNBC that “we’re the finest proxy for investing in this market.”
“We were seeking for the kind of sponsors who would be willing to accompany us on this trip over the next couple of decades, and who would be willing to do so.”
Capital G said in an accompanying blog post that Silbert’s leadership and DCG’s track record in the cryptocurrency industry are the two most important reasons it is making its first cryptocurrency investment. As an organization, CapitalG has just recently begun to monitor cryptocurrency, despite having been active as individuals with it since 2013.
As cryptocurrency has reached a tipping point, we are enthusiastic to invest extensively in the industry, and we are particularly pleased that DCG is the first investment made by CapitalG in the field.” For years, banks have been vocal in their opposition to cryptocurrencies. In fact, some people are still upset over Jamie Dimon, the CEO of America’s largest bank, who just ripped into the cryptocurrency.
We’re thrilled to partner with @DCGco as they transform the digital asset industry. Hear from @CapitalG’s @dlawee and Chengpeng Mou about our journey together and what’s next for Web 3.0.https://t.co/3ckavTH9Rd
— CapitalG (@CapitalG) November 1, 2021
New reports, on the other hand, suggest that they are investing a lot of money behind the scenes to prepare for the Bitcoin disruption. Banks in Europe and North America, according to reports, are spending vast amounts of money to recruit the finest people and construct systems that are capable of handling Bitcoin transactions.
According to an expert quoted in the Financial Times, an experienced blockchain applicant may expect to earn between $200,000 and $270,000 per year plus bonuses in London and Wall Street. According to him, blockchain coders may earn up to $340,000 per year. According to him, “Even a competent and passionate bitcoin hobbyist will be able to find work.”
In the United States, Thomas Montag, the CEO of Bank of America, has been one of the most outspoken Bitcoin detractors throughout the years, particularly in the media. According to a source, he has, on the other hand, been devoting a significant amount of time to studying about cryptocurrencies, both through online sources and by meeting with specialists.
According to a person who spoke to The New York Times, Montag is not the only senior executive at the bank who is interested in learning about cryptocurrency. One of Silicon Valley’s most venerable investors expresses sorrow for not having purchased more Bitcoin earlier in the year. At a recent event, Peter Thiel discussed Bitcoin, the condition of the economy, and the Federal Reserve’s miscalculations in recent years.
Thiel is well-known for his investments in some of the most successful companies in the world today. He was the first outside investor in Facebook, and he has subsequently made investments in companies such as Airbnb, LinkedIn, Spotify, SpaceX, Quora, and Block, among others. One is the firm that created EOS. While he regrets not acquiring more Bitcoin, he does not believe that the current price represents a favourable entry point into the cryptocurrency market.
“You know, $60,000 Bitcoin? I’m not convinced that’s something you should rush out and purchase. But, without a doubt, what it is telling us is that we are in a period of transition.”
Thiel has admitted in the past that he made insufficient investments in Bitcoin. The following is what he said in Miami as Bitcoin reached a new all-time high of slightly over $66,000: “…you’re expected to simply buy bitcoin.”
I feel like I’ve put in too little effort into it. However, the fact that it is now valued at $60,000 is an enormously encouraging indicator. “It’s the canary in the coal mine,” says the author.
Michael Saylor, the CEO of Microstrategy, is one of the few business executives who is enthusiastic about Bitcoin. As recently as last week, he restated his conviction in the potential of Bitcoin,
stating that “it will continue to rise indefinitely.”
He claims that his business increased its BTC holdings by 9,000 BTC in the third quarter of this year, according to a recent regulatory filing. Depending on market conditions and what seems to be most accretive to our shareholders, MicroStrategy will continue to buy [BTC] on a quarter-by-quarter basis and from time to time, either using cash flows, debt, or stock.