BitGo Custodian Reveals $250 Million Bitcoin Holdings

The custody service BitGo said it holds Bitcoin on its balance worth $250 million (about 4,835 BTC at the time of writing). CoinDesk reports, citing BitGo CEO Mike Belshe.

According to the chief executive, the custodian added digital gold to its balance in 2014. In the same year, BitGo launched a multisignature wallet for managing reserve assets.

“I strongly urge companies to invest in Bitcoin. I think the global pandemic has shown that interacting with digital assets stabilizes business rather than destabilizing,” said Belshe.

The head of the custody service said the decision was driven by a desire to align the interests of clients. He added that the development of the sector took longer than BitGo had expected.

“When a venture-capital-backed firm opens a position in something other than the US dollar, it is a highly contested decision. Investors would not have allowed us to invest in gold,” noted Belshe.

BitGo invested on the premise that, if Bitcoin’s price collapsed to zero, the company would have reserves to operate for 24–36 months.

In March, Citibank analysts said that the first cryptocurrency had reached a turning point — it could either become a means of settlement in international trade, or endure a ‘speculative explosion’.

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