Three Arrows makes Bitcoin purchase worth over $1 billion

The Singapore hedge fund recently bought Bitcoin through the Trust offered by Grayscale

Through the last quarter of 2020, several companies showed keen interest in purchasing Bitcoin to add to their portfolios. Some of them went ahead to invest in the digital asset as it proved to be a viable hedge against inflation and a perfect store of value. MicroStrategy is one of the big names that caught headlines after investing about $1.25 billion in Bitcoin.

New year, same moves

It doesn’t look like institutional investors are backing out of the crypto sector anytime soon. Three Arrows Capital is the latest name to have invested in Bitcoin. According to a Securities and Exchange Commission (SEC) filing, the investment firm has Bitcoin holdings worth over $1.3 billion.

This makes it the second company, after MicroStrategy, to eclipse the $1 billion mark in BTC holdings. The hedge fund company purchased 38,888,888 shares from Grayscale’s Bitcoin Trust (GBTC) each at $34.10. The acquired shares can be converted to Bitcoin at a standard rate of nearly 0.001 BTC.

The company’s co-founder Kyle Davies confirmed news about the purchase with a comment on Frank Chaparro’s tweet about the purchase.

“38888888 $GBTC, 36969 $BTC,” he wrote.

It is not yet clear, as of writing, if the executives and board discussed the play as right for the company or if a specific client requested the company to make the purchase.  Either way, it is a big one-off purchase as the hedge fund now accounts for 6.1% of GBTC’s holdings. Three Arrows Capital is seemingly poised to make subsequent crypto investments based on a statement from Davies.

“We continue to enjoy working with the Grayscale team and look forward to investing more in the crypto ecosystem.”

Blockstream’s Samson Mow commented on the development yesterday saying, “I know you guys aren’t really panicking about #Bitcoin, but in case you are… One River ($1.6B fund) bought $600M & will buy $400M more, Guggenheim ($5.3B fund) will buy $530M, SkyBridge ($9.2B fund) bought $182M, Ruffer ($27B fund) bought $744M, and MassMutual ($675B AUM) bought $100 M.”

More influential companies are getting in on the Bitcoin action and this investment trend doesn’t look like it will dwindle anytime soon.