The 3rd-Largest Bitcoin (BTC) Wallet Acquired 1,400 More BTC Last Month
Bitcoin’s market is known for its concentration among top holders, with the largest wallets holding a significant portion of the supply. As institutional adoption increases, information about these top holders becomes more accessible.
Companies like MicroStrategy Inc. (NASDAQ:MSTR) and Tesla Inc. (NASDAQ:TSLA) have amassed billions of dollars in Bitcoin (BTC), which they disclose in financial reports. This level of transparency allows the public to connect blockchain activity with specific companies. However, some anonymity still exists among the largest wallets.
One notable anonymous wallet began acquiring Bitcoin in May 2023 and continued buying throughout the summer, accumulating over 120,000 tokens. At the time, BTC was trading at around $30,000, making the position worth approximately $3.6 billion.
Another 10,000 BTC
On Jan. 5, the wallet acquired another 10,000 BTC, bringing the total balance to over $5.5 billion. This purchase coincided with the approval of spot exchange-traded funds (ETFs) on Jan. 10, which was a significant price catalyst in 2024.
There were no notable transactions until March when transactions totaling 7,750 BTC were made, bringing the portfolio’s value to over $9 billion. This occurred around the time BTC reached new all-time highs (ATHs).
In early April, the wallet acquired an additional 1,400 BTC for around $100 million, bringing the total balance to over 136,000 BTC, currently worth over $9 billion. Of this amount, $5.6 billion is profit.
Who owns the wallet, and why have they been accumulating billions in BTC? Let’s consider some possibilities.
One theory is that the wallet serves as a custodial wallet for a spot Bitcoin ETF, as it began acquiring tokens last year, potentially anticipating ETF approval. Additional transactions in January and the past two months support this hypothesis. The $9 billion in BTC would be enough to support ETFs such as the ARK 21Shares Bitcoin ETF (BATS:ARKB), Bitwise Bitcoin ETF (NYSE:BITB), VanEck Bitcoin Trust ETF (BATS:HODL), and Invesco Galaxy Bitcoin ETF (BATS:BTCO).
Another possibility is that the wallet belongs to a large investor who thought Bitcoin was at relative lows last summer and began buying. While the investment has been profitable, the wallet’s size and investment amount suggest it is likely an institutional investor.
It is also possible that the wallet belongs to an ETF sponsor, based on the amount and timeline of transactions. However, it could also be an individual or institution that made a timely investment.
