TL;DR
- Galaxy Digital has allegedly acquired 400 BTC, valued at approximately $23.4 million, which could indicate a shift in its investment strategy.
- The purchase follows a previous withdrawal of 6,950 BTC from Binance and a subsequent redeposit of 2,050 BTC.
- There is a broader trend among institutions increasing their BTC holdings, while some are reducing theirs.
Galaxy Digital, one of the leading investment managers in the blockchain industry, has carried out a significant expansion in its Bitcoin holdings through the acquisition of 400 BTC, valued at approximately $23.4 million. The purchase was reported by on-chain analyst @ai_9684xtpa through a post on X. The firm may be implementing a shift in its investment strategy, seeking to capitalize on the recent volatility in the crypto market.
The significant acquisition follows a series of previous movements by Galaxy Digital. Between July 27 and August 2, 2024, the firm withdrew 6,950 BTC from Binance, worth around $464 million, at an average price of $66,776 per BTC. This operation may have been part of a plan to capitalize on favorable market conditions at that time.
Galaxy Digital(@galaxyhq) 疑似于半小时前增持 400 枚 BTC，价值 2340 万美金
该机构曾在 07.27 – 08.02 期间密集的从 #Binance 提出共计 6950 枚 BTC，价值高达 4.64 亿美金，均价 $66776
随后在 08.03 – 08.06 一周内又向交易所充值了其中 2050 枚（约 1.12 亿美金），若卖出将亏损 2478 万美金 https://t.co/hPWPZaNo7o pic.twitter.com/DVBShUCdI2
— Ai 姨 (@ai_9684xtpa) August 19, 2024
However, Galaxy Digital’s approach to Bitcoin management has been subject to fluctuations. After the large withdrawals, between August 3 and August 6, the company redeposited 2,050 BTC into Binance, valued at around $112 million. This action took place during a period of high turbulence for the crypto industry.
Galaxy Digital Continues to Bet on Bitcoin
After acquiring approximately 400 BTC, Galaxy Digital continues to bet on Bitcoin’s long-term potential, despite short-term market fluctuations. Currently, the market value of Bitcoin could imply a loss of $24.78 million if the redeposited BTC were sold at the current price. According to the latest data from CoinMarketCap, Bitcoin (BTC) is trading at around $58,300 after recording a daily drop of 2.55%.
A recent study indicates that while some institutions are reducing their Bitcoin holdings, others are exponentially increasing their investments. Examples include Capula Management and Avenir Tech/Hong Kong, which have increased their Bitcoin exposure by $470 million and $388 million, respectively. Other prominent institutions such as Goldman Sachs, Galicia Asset Management, and Ark Investment Management have also increased their holdings.
