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.
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