Bloomberg has reported the rich have Bitcoin worth $10 billion hidden in bunkers at Xapo. This a rough estimate based on the current price of bitcoin. Two Xapo clients while speaking to Bloomberg confirmed this to be true.
Xapo is a bitcoin wallet provider that also offers cold storage services. It got into the crypto market in 2014 and last year made headlines for converting a Swiss bunker into a Bitcoin storage facility.
Xapo CEO Wences Casares spent the last few years trying to convince rich people in the Silicon Valley that Bitcoin is the future and they should buy some and storage shouldn’t be a problem since he was going to safely store them.
Xapo now has underground vaults in five continents where they handle Bitcoin worth $10 billion hidden in bunkers from institutional and private investors. Xapo’s Bitcoin holdings represent 7% of the global Bitcoin supply. This means the company has more Bitcoin deposits than 98% of the banks in the US.
One company that stores client’s coins with Xapo is CoinShares, a UK-based company. It has deposited over $500 million of clients Bitcoins with the company.
Coinshares CEO Ryan Radloff says:
“Everyone who isn’t keeping keys themselves is keeping them with Xapo,” adding “You couldn’t pay me to keep it with a bank.”
Xapo is backed by billionaires including Reid Hoffman the co-founder of LinkedIn Corp. and Mike Novogratz who happens to be a former Wall Street trader. Mike is already working on setting up his own cryptocurrency merchant bank. Both believe Bitcoin and the other cryptocurrencies are here to stay and as long as they have value theft will always be an issue.
The Bitcoin holdings are set to increase in value in the coming week with the Consensus conference set to take place on May 14 – May 18. The meeting is set to discuss all things cryptocurrencies and blockchain technology.
Is storing Bitcoins in vaults the only sure way to protect them from theft? Share your thoughts in the comment section below.