BitGo Reveals $250M in Bitcoin Holdings, Signaling More Crypto-Native Disclosures Ahead

The crypto custodian has had bitcoin on its own balance sheet since 2014, CEO Mike Belshe told CoinDesk.

AccessTimeIconMar 2, 2021 at 7:35 p.m. UTC
Updated May 9, 2023 at 3:16 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Digital asset infrastructure company BitGo holds $250 million in bitcoin on its balance sheet, CEO Mike Belshe revealed to CoinDesk in a recent interview.

The disclosure comes at a time when more crypto companies are opening up about their own bitcoin holdings. It’s not unusual for crypto firms to hold the same assets as they’re selling to their customers, but a recent wave of institutional investment has these same firms sharing details about their own investments in crypto assets. 

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Why Core Scientific is Focused on 2028
    00:57
    Why Core Scientific is Focused on 2028
  • Bitcoin, Ether Rise Amid ETF Steam in Hong Kong; Solana's Latest Update
    02:14
    Bitcoin, Ether Rise Amid ETF Steam in Hong Kong; Solana's Latest Update
  • Bitcoin Whales Yet to Resume Accumulation: IntoTheBlock
    01:06
    Bitcoin Whales Yet to Resume Accumulation: IntoTheBlock
  • BitGo has had bitcoin on its balance sheet since 2014, Belshe said. One of the first products BitGo pursued in that same year was a multi-sig, multi-user wallet designed in part for treasury management, he added.

    While putting bitcoin into treasury became trendy in 2020 with MicroStrategy, Square, MassMutual and others, it’s an asset diversification strategy that BitGo had seen clients practice long before the bull run. 

    “It’s taken longer for the industry to evolve than we thought it would,” Belshe said. 

    BitGo’s disclosure comes about a week after leading crypto exchange Coinbase revealed in a blog post that it has held bitcoin and other assets on its balance sheet since 2012

    At the time BitGo added bitcoin to its own treasury, Belshe argued the firm should have the same exposure to the asset its customers were taking on. 

    “A venture-backed firm taking a position on something other than U.S. dollars for their investment money is a very controversial thing,” Belshe said. “If the founders came to the investors and said, ‘Hey, I’d like to take the cash you gave us and put it in gold, the answer would be, ‘No, you shouldn’t do that.’”

    At the time, BitGo developed a liquidity policy that looked at what would happen in the event the digital assets in its treasury went to zero, and has maintained 24 to 36 months of cash runway aside from its digital asset holdings. 

    “I strongly recommend that companies invest heavily in bitcoin,” Belshe said. “I think the global pandemic has shown that some exposure to digital assets is actually a way to stabilize your business as opposed to destabilizing it.”

    Belshe points to insurance funds and pensions allocating 3% to 5% of their cash reserves to bitcoin as a benchmark for other companies thinking about adding bitcoin to the balance sheet. While interest rates remain low, Belshe expects investors to keep pouring into high-yield assets like bitcoin for some time. 

    “Generally, what people are expecting is a pretty dismal [bond] market for a while,” Belshe said. “The other place you can go right now is the stock market but if those bond rates go up then the stock markets are going to take a hit … so I think people are looking for a general hedge against both markets.”

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.