Most Bitcoin enthusiasts will know the name GBTC by now as this is one of the few publicly trading companies dealing with Bitcoin. Although not too many people saw the benefit to this service, the Bitcoin Investment Trust has recently surpassed the US$100m valuation mark.
Bitcoin Investment Trust Keeps On Rallying
The Bitcoin Investment Trust [OTCMKTS: GBTC]has been making media headlines over the past year due to their valuation of every individual Bitcoin. With a premium of 15% and upwards per coin, they are sending a strong signal the Bitcoin price will be going up in the very near future.
Despite all of this, the Bitcoin Investment Trust has been attracting more investors, and their total valuation has increased as well. Earlier today, the company surpassed the US$100m mark, and the price per share rose to US$73.60. Quite a significant increase from a few months ago and things are looking good for this company.
One thing investors in the Bitcoin Investment Trust have to keep in mind is how buying shares and hoping to sell them at a higher price will be quite risky. Although this is second nature in the stock trading world, a lot of people assume the US$60 price per GBTC share was the peak. As it turns out, there was – and maybe still is – a lot of profit to be made.
There is also the question as to whether or not market caps matter for publicly traded companies these days. While it is certainly good to see the Bitcoin Investment Trust reaching a higher total valuation, a lot of Bitcoin enthusiasts will not care all that much about those numbers. After all, that does nothing for the current Bitcoin price by any means.
However, this increasing valuation of Bitcoin Investment Trust also provides additional legitimacy to Bitcoin itself, in a way. Investors seem willing to invest in this company due to its ties with Bitcoin, which is a positive sign. It will be interesting to see where this company goes next, and how the Bitcoin price will respond to all of this.
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