Image source under CC: Microstrategy
Microstrategy, a billion-dollar NASDAQ listed tech company that provides software-based solutions for mobile platforms and cloud computing is now investing a lot in Bitcoin. The CEO Michael Saylor has now stated on Twitter that he owns $240 million in the cryptocurrency personally. This announcement comes after Microstrategy announced an entrance into the world of cryptocurrency investing and bought more than $425 million in Bitcoin in Q3 of 2020.
Dawn of Institutionalized Investment in Bitcoin?
Gone are the days when big tech CEOs and investors are warning people against investing in cryptocurrencies. Instead, more and more regular investors are looking to consolidate their positions in the industry and are investing in Bitcoin more than ever before. Just a few years back even when Bitcoin was hovering around record levels, big businesses were reluctant to invest in the sector because of fears of volatility and instability of the emerging sector. Executives of big banks were especially known to be vocal against investing in Bitcoin and there is a long list of prior statements that show this previously held bias. This happens every time a new disrupting force is brought to the market that can change the status quo.
In the words of great inventor Nikola Tesla:
“All that was great in the past was ridiculed, condemned, combatted and suppressed only to emerge all the more triumphantly from the struggle”
So, cryptocurrencies after years of being ridiculed and condemned are starting to emerge triumphantly from the struggle for financial independence and inclusivity. There are several large companies and investment groups that have invested a considerable sum of money since the start of this year alone.
Who has Invested the most in Bitcoin?
Square, a payments platform purchased $50 million worth of Bitcoin a few months ago, Japanese and Norwegian governments’ national pension funds have also reportedly invested hundreds of millions of dollars into Bitcoin. But, by far the largest investments have come from Microstrategy and Grayscale, with the former investing around $425 and the latter in excess of $1 billion till Q3 of 2020.
While the news regarding Microstrategy’s foray into Bitcoin was made public a while ago, the CEO of the company has now come forward and stated that he himself owns $240 million in Bitcoin in a personal capacity. This shows us that how he trusts the cryptocurrency and is willing to hold such large amounts of it to help bring considerable rewards in the near future.
Saylor himself tweeted:
“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”
The tweet was both an acknowledgement of the sector and an assurance to investors of his own company that he had total faith in Bitcoin and he is putting his money where his mouth is. The good news is that when the company bought the $425 million Bitcoin, the price index was hovering around $11,000 and now it is around $13,700 at press time. Saylor has also stated that the company wants to hold the asset for more than 100 years.
This shows that the company’s assets increased to $514 million in a matter of months. No other asset has been this rewarding despite the stock market posting record growth in recent times because of a government-sponsored bailout package for the sector during the Coronavirus pandemic. The cryptocurrency is still posting considerable growth despite the cooling stock market situation.
Verdict
The cryptocurrency sector especially Bitcoin is an inflection point. Data shows that interest in the sector and big investments will result in considerable appreciation of the sector in the future. However, analysts disagree when exactly it will happen. The recent Bitcoin price jump from $10,000 to $13,500 represents a growth of over 35% and some analysts believe this is it and the cryptocurrency will really take off from here. However there are some hurdles that remain and the cryptocurrency will need to overcome them in order to continue the trajectory upwards. If more and more companies start to hoard their wealth in crypto, then the upwards move will continue on for sure.