Square’s Grayscale cash app and asset manager used over 50% of recently issued Bitcoin (BTC) in the first quarter of 2020, as a new report shows.
Australian fund manager ListedReserve tweeted A calculation based on two gross measures: Incoming gray levels will flow into Bitcoin and Ethereum funds of $ 388.9 million in the first quarter and $ 306 million in cash app revenue from Bitcoin sales during the reporting period same period.
These numbers were divided by the total value of BTC quarried in the first quarter – $ 1.3 billion – based on BTC’s average price of $ 8,068.
The results showed that Grayscale and Cash App sold around 29% and 23% of the newly mined Bitcoin in the first three months of 2020each.
“The point is how they are increasingly consuming more of the available offer,” said a spokesman for ListedReserve in a comment to Cointelegraph, adding:
“So let’s say demand remains constant, they’re going to buy more bitcoins in a quarter than they’re mining in a quarter, which means other sellers have to sell, which of course they do.”
Possible effects after halving
When asked what impact this could have on the industry, the representative of ListedReserve replied:
“It’s incredible. Two US companies are consuming more than half of the new offering. Without Coinbase / Binance / Bitfinex / OKCoin and other exchanges around the world, considering that most bitcoins are being mined. What will happen?” after halving, if the new offer halves every quarter?
Alistair Milne, a well-known Bitcoin investor, shared an identical feeling and tweeted::
“So what happens in less than 5 days when two companies already buy 52% of all #Bitcoin mined?”