Tiger 21 has added nearly $6 million of crypto to its portfolio, keeping the move in tandem with other bigger players.
The founder and chairman of Tiger 21, a network of high-net-worth investors and entrepreneurs, Michael Sonnenfeldt, disclosed that the network’s members own almost $6 billion in digital currencies between them.
“Approximately 1% to 3% of our $200 billion in assets, or about $6 billion, are in digital currencies”, Sonnenfeldt said in an interview with CNBC on Wednesday, January 5th.
TIGER 21 Allocates 80% Funds to Risky Assets
Most of Tiger 21’s members are dedicated to the digital currency space. Sonnenfeldt added, “Gold suits traditionalists, while Bitcoin has a modern appeal, but they generally serve the same role as stores of value.”
According to Sonnenfeldt, TIGER 21’s cash position is below 10% for the first time in 17 years, and over 80% of its $200 billion portfolio is made up of “long-only risk-on assets” like private equity and public and private real estate.
The cryptocurrency allocations made by TIGER 21 in its portfolio were not disclosed by Sonnenfeldt.
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Why Are More Corporates Buying Crypto?
Due to the possibility for increased profits, diversification, and the applications of blockchain technology, corporate interest in cryptocurrencies has grown dramatically in recent years.
Businesses that see Bitcoin as a store of value and a hedge against inflation, such as Tesla, MicroStrategy, and Square, have included it in their financial plans.
Businesses in e-commerce, technology, and banking are also looking into methods to incorporate cryptocurrency into their operations, such introducing blockchain-based services or providing cryptocurrency payments.
This increased institutional acceptance underscores cryptocurrencies’ growing significance in the global economy and shows confidence in their long-term viability.
Tiger 21’s Move In Tandem With Other Market Players
As part of their investment strategy, a number of well-known companies are actively purchasing and holding cryptocurrency, especially Bitcoin. With more than 471,107 $BTC, business analytics company MicroStrategy has grown to be one of the biggest corporate Bitcoin owners.
The massive electric car manufacturer Tesla made news when it bought Bitcoin, demonstrating its faith in the virtual currency. Square (now Block), under the leadership of Jack Dorsey, is another noteworthy example of a company that has incorporated Bitcoin into its financial services.
Additionally, Galaxy Digital, an investment firm that focuses on cryptocurrency, also keeps buying Bitcoin to expand its holdings. Along with technological progress, many businesses see cryptocurrency as a hedge against inflation and a store of value.
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