Xapo now holds around 7% of the Bitcoin supply in their own vaults. This roughly translates to around $10 billion. The sources who have stated this information are yet to be named, but this is huge news to say the least. When you look at the notes, it isn’t hard to see that the company hold over $10 billion in Bitcoin and a lot of people believe that this is a very accurate approximation. Of course, this information cannot be stated as fact until the sources come forward or are at least identified, but it is interesting news.
This is especially the case when you consider the fact that companies like Xapo have only been in operation for a couple of years. They started on the market in 2014 and they have made a lot of headlines ever since. They converted a Swiss bunker into a fully functioning Bitcoin storage facility. This only happened late last year and it is incredible to think that they hold such a huge amount of money with such little experience. What’s even more interesting is that they have struggled to achieve validity since they moved from their home country to the US. It’s also important to know that cryptocurrency funds have praised the idea of having storage. This does come with its own problems such as lack of control and a centralised setup. You’d have thought that most people would be against it for this very reason, but that doesn’t seem to be the case at all. There are cold storage options available at the moment and this includes hardware wallets, and they have certainly taken off over the last couple of years. The main thing that you have to remember here is that everyone who isn’t keeping keys are keeping their money with Xapo. The CEO of Coinshare has stated that you couldn’t actually pay him to keep his money with the bank.
As of late, there has been a huge demand for cold storage and this is especially the case with Bitcoin. Only time will tell what happens now, but with cold storage becoming bigger by the year, it isn’t surprising to see that Bitcoin are making their own investment moves with the currency.