Cryptocurrency
How investors make money from Bitcoin without owning crypto
Global investors are buying into Microstrategy stocks because they see it as a Bitcoin bet.
It’s no news that a popularly known American listed software company, MicroStrategy, bought 8,250 bitcoins worth more than $515 million,.
But what’s becoming news is the bias that global investors are buying into the company stock at record levels because they see it as a Bitcoin bet.
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What you should know
Global investors or large entities wishing to buy bitcoin can just buy the company stock listed on the American Stock exchange – with the bias that almost all its cash reserves are kept in Bitcoins.
READ: Investor moves $133 million worth of Bitcoins, suspected from Coinbase
- MicroStrategy has seen its shares ticking up since the company started allocating cash to crypto-assets. In August 2020, when the company disclosed it had invested $250 million in bitcoin, the share price rallied by 9% in a day. In the month of September, MicroStrategy stated that it would continue to put most of its cash reserve into bitcoin. Investors, therefore, increased their buying pressure on the stock leading to a gain of 23% in two days.
- At their peak on October 23, the software company’s shares had doubled in value since their record low in early March.
- That said, MicroStrategy’s CEO, Mr. Saylor, disclosed the major objective of buying the flagship crypto wasn’t to boost the company’s upside, but primarily to hedge against inflation and keep its purchasing power intact.
READ: Bulls on rampage, Ethereum wallets now record high
He also disclosed how he convinced the board of Microstrategy to invest in Bitcoins from his personal experiences in investing in the fast-changing investment asset.
“Some have asked how much BTC I own. I personally hold 17,732 BTC which I bought at $9,882 each on average. I informed MicroStrategy of these holdings before the company decided to buy bitcoin for itself.” he tweeted.
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Some have asked how much #BTC I own. I personally #hodl 17,732 BTC which I bought at $9,882 each on average. I informed MicroStrategy of these holdings before the company decided to buy #bitcoin for itself.
— Michael Saylor (@michael_saylor) October 28, 2020
READ: Global companies are buying Bitcoins to hedge against inflation
Recall Nairametrics some week ago, broke the news on how MicroStrategy CEO, Michael Saylor, the leader of a U.S public traded company, had convinced the board to allocate nearly all of the company’s $425 million cash position to bitcoin.
MicroStrategy has made a number of headlines in recent times for its initial $250 million Bitcoin (BTC) investment. The company later poured a subsequent $175 million into the asset – a lengthy endeavor totaling almost 100 hours of work.
Cryptocurrency
$385 million worth of Bitcoin moved by unknown identity
As Bitcoin’s price trades above $15,800, an unknown Bitcoin whale moved more than $105 million worth of cryptos.
Large entities are taking the center stage at the fast-changing financial market, amid strengthened price volatility seen at the flagship crypto’s market.
What we know
Data retrieved from, advanced crypto tracker, Bitcoin Block Bot, revealed that someone moved 22,816 BTC ($386M) in block 658,953 some hours ago.
Whale alert! 🐋 Someone moved 22,816 BTC ($386M) in block 658,953 https://t.co/ffndnEuLx6
— Bitcoin Block Bot (@BtcBlockBot) November 27, 2020
As Bitcoin’s price trades above $15,800, an unknown Bitcoin whale moved more than $105 million worth of cryptos.
At the time of writing, Bitcoin was trading at $17,048.47 with a daily trading volume of $28,874,917,829.
It’s critical to observe that recent price action in the flagship crypto market indicates that a significant number of buyers have been aggressively buying at the $16,000 price support level which is marked by large entities.
This further illustrates that the demand for bitcoin is relatively high, as bitcoin whales curb broader pullback, at least in the near term.
Nairametrics, predicts the increased buying pressures by such large entities are partly responsible for the relative rebound seen in the bitcoin market.
Although it’s often difficult to predict movements in the crypto market, taking into account high volatility. BTC whales have shown historically that they often determine the BTC trend.
What this means from a macro level is that the increase in the number of these large entities can be considered bullish.
Cryptocurrency
Ripple on steroids, up 11%
Ripple recorded its highest percentage gain since November 24, gaining up to 10.61%.
Popularly known crypto asset, XRP, is recording significant appreciation in its price amid increased buying from global investors.
What we know
Ripple recorded its highest percentage gain since November 24. At the time of writing, it had gained 10.61%.
- The move pushed Ripple’s market value to around $24.09 billion, or 4.83% of the total cryptocurrency market capitalization.
- Also, the third most valuable crypto asset has been trading from $0.50451 to $0.58549 for some hours now.
- At such prevailing price, Ripple has plunged by 83.68% from its all-time high of $3.29 set on January 4, 2018.
XRP was designed by Ripple mainly to perform speedy, less costly, and more scalable alternative transactions for both crypto assets and existing monetary payment platforms like SWIFT.
Ripple owns more than half of the total supply of XRP. In late 2017, the company vowed not to sell all of its tokens (XRP) at once, keeping up to 55 billion XRP in protected escrow accounts.
It plays a dual role as a payment platform and a currency. The platform is an open-source platform that is created to allow quick and cheap transactions.
Unlike its major crypto rival, Bitcoin, which was never intended to be a simple payment system, Ripple has gained the attention of major global banks such as Standard Chartered, and Barclays for international transactions worldwide.
Cryptocurrency
Canadian investment company buys more Bitcoin
The Canadian investment company recently disclosed it added about 73.9 BTC to its reserves since the middle of 2020.
Cypherpunk Holdings a publicly listed Canadian investment company, amid record sell-offs prevailing in the flagship crypto market, has recently purchased more Bitcoin (BTC).
The Canadian investment company recently disclosed it added about 73.9 BTC to its reserves since the middle of 2020. Cypherpunk holdings raised cash by selling other crypto-assets like Monero (XMR) and Ethereum (ETH).
READ: Total credit to the economy rose to N19.54trillion – CBN Governor
With the purchase, Cypherpunk now has 276.5 Bitcoins making it the 9th public Bitcoin holder. At current values, such crypto is worth about $5 million.
The report further added that “During October 2020, Cypherpunk Holdings Inc. was added to the unofficial list of public companies with a treasury position in Bitcoin alongside other companies such as MicroStrategy [MSTR], Square [SQ], and Galaxy Digital Holdings [GLXY].”
READ: Bitcoin boosts Square earnings in Q3
At the time of writing, Bitcoin price traded at $17,151.39 with a daily trading volume of $44 billion. BTC price is down -3.0% in the last 24 hours. It has a circulating supply of 19 million coins and a max supply of 21 million coins.
Recall a publicly-traded company based in America, MicroStrategy, adopted Bitcoin as a treasury reserve asset to hedge against fiat inflation. This is seen in many quarters as a big deal and it’s good to see BTC’s being used as intended – a hard money/savings instrument.
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Bottom-line: The many global economic uncertainties that include inflation and the depreciation in value for most global fiat currencies have made cash an unreliable store of value, pushing well-known companies like Square, MicroStrategy, Grayscale to store their value in a deflationary currency like Bitcoin.
READ: Global companies are buying Bitcoins to hedge against inflation
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Sandra williams
November 1, 2020 at 11:32 am
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