Are Institutions Heavily Invested In Bitcoin Group SE's (ETR:ADE) Shares?

By
Simply Wall St
Published
June 06, 2021
XTRA:ADE
Source: Shutterstock

If you want to know who really controls Bitcoin Group SE (ETR:ADE), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

Bitcoin Group is a smaller company with a market capitalization of €207m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Bitcoin Group.

View our latest analysis for Bitcoin Group

ownership-breakdown
XTRA:ADE Ownership Breakdown June 7th 2021

What Does The Institutional Ownership Tell Us About Bitcoin Group?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Bitcoin Group does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Bitcoin Group's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
XTRA:ADE Earnings and Revenue Growth June 7th 2021

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Bitcoin Group. Priority AG, Asset Management Arm is currently the largest shareholder, with 77% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 1.0% and 0.5% of the shares outstanding respectively, Universal-Investment-Gesellschaft mbH and Norges Bank Investment Management are the second and third largest shareholders.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Bitcoin Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our data cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public holds a 20% stake in Bitcoin Group. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Bitcoin Group better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Bitcoin Group you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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