The affordable housing-oriented US investment firm Lincoln Avenue Capital bought 1,000 BTC at an average price of $33,525.
Lincoln Avenue Capital has acquired 1,000 #Bitcoin at an average price of $33,525. The purchase represents 5% of the firm’s AUM as of July 10, 2021. The company may invest up to 20% of total AUM in the asset class in the future, per its investment mandate.
The organisation has invested 5% of assets under management in bitcoin. In the future, it will invest in digital gold and other cryptocurrencies up to 20% of the funds entrusted to it.
Lincoln Avenue Capital was founded in 1998. It owned more than 10,700 properties at the end of 2020.
The company announced the acquisition of the cryptocurrency amid the potential transition of bitcoin into an accumulation phase. According to Dylan Lecler, co-founder of consultancy firm 21st Paradigm, this is indicated by the Liveliness indicator.
Large institutional investors are increasingly interested in the digital asset market. In some cases, they are abandoning direct ownership of cryptocurrencies in favour of quasi-investments through securities companies such as MicroStrategy.
According to a filing for the SEC, the more than $2.2 trillion asset manager Capital International Group acquired almost 1 million (12.2%) of Michael Saylor's common shares.
MicroStrategy had previously incorporated a "subsidiary", MacroStrategy, to which it transferred all of the acquired cryptocurrency. According to Bitcoin Treasuries, the latter has 105,084 BTC (~$3.6 billion at the time of writing) on its balance sheet.
Collectively, the wallets of corporate owners hold more than 1.6 billion BTC - almost 8% of the cryptocurrency's total supply.
As a reminder, in July it was reported that UK hedge fund Marshall Wace, with more than $50bn in assets, was considering investing in the digital asset industry.