MicroStrategy – a software service provider that gained popularity due to its massive Bitcoin investments – has taken another daring step in the cryptocurrency space. The firm bought 15,350 bitcoins for $1.5 billion with the average cost of each BTC about $100,386. This is the sixth acquisition made in six weeks, and it positions MicroStrategy as a key influencer within the Bitcoin market.
MicroStrategy Continues To Build Its Bitcoin Stash
After this latest acquisition, MicroStrategy now owns 439,000 BTC, equivalent to about $27.1 billion. Currently, Bitcoin is an exclusive asset type, the company’s possession of it is more than 2% of the total Bitcoins in circulation. MicroStrategy had followed the right investment strategy and by now, the company has had a quarter-to-date yield of 46.4% and a year-to-date yield of 72.4%. The way the company has taken on Bitcoin has attracted the attention it has in the financial world, and with the huge figure it holds on its balance sheet, remains the largest public company holder of Bitcoin.
This means that MicroStrategy, which already owns a large number of Bitcoins, has not shown any desire to calm down yet. The particular acquisition is in one of a series of buyouts that were initiated in November and extended through December. Rarely making a public statement, MicroStrategy’s founder Michael Saylor has been a staunch defender of the company’s Bitcoin strategy and apparently, he also agrees with how the company sees the future of Bitcoin.
Proposal For MicroStrategy Incorporation Into The Nasdaq-100
However, apart from the crypto purchases made by the company, MicroStrategy has also risen through the ranks in the stock market. Beginning December 23, the firm will become a component of the Nasdaq-100 index, a highly desirable index as it is in œ500. This inclusion places MicroStrategy in the spotlight, as it will be in some headline index-tracking ETFs like the Invesco QQQ, which has assets of over $300 billion in its purviews. It also leads to greater exposure amongst the retail and institutional investors, which MicroStrategy stands to benefit from by being included in the Nasdaq-100.
Thus, adding the company to the Nasdaq 100 list is a financial affair and a successful experience in handling bitcoins. This way, as more institutional investors get introduced to MicroStrategy through these funds, more exposure to Bitcoin as an asset class could be generated. Investment in Bitcoin by MicroStrategy and further purchases are important for its positioning in the Nasdaq-100 index; MicroStrategy’s position within the Nasdaq-100 will depend on the company’s Bitcoin policy.
The Impact of Bitcoin on MicroStrategy’s Stock
By observing the movement of MicroStrategy’s stock price, it can easily be seen that its acquisitions of Bitcoin have influenced the direction of the company’s price. This year specifically, the company’s shares have increased its value by more than 540% thanks in part to its Bitcoin connection. This substantial rise in the stock value is due to the global institutional adoption of bitcoins and MicroStrategy’s positioning as the premier Bitcoin treasury firm.
However, there has also been increased investor optimism in Bitcoin – another reason MicroStrategy’s stock has risen after joining the Nasdaq-100 index. Hence, a continuous rise in price per Bitcoin increases MicroStrategy’s value of Bitcoins leading to a favorable Macroeconomic flow cycle on the shares. According to market analysts, a dominant position of the company in the Nasdaq-100 and persistent purchases of bitcoins can attract more institutional investors, which can also lead to a new clip in the price of the company’s shares.
What is MicroStrategy’s Next Step, and What About Bitcoin?
MicroStrategy is on a BUYING SPREE with Bitcoin and all eyes will be on this company in the future as to which way it will go. The firm is very enthusiastic about Bitcoin, and the latest acquisitions indicate that it intends to continue to dominate the market for the currency. As Bitcoin continues to rally and institutional adoption is on the rise it is evident that MicroStrategy’s Bitcoin initiatives will remain a point of emphasis into the future.
In the future, MicroStrategy will likely focus on how it is performing in the Nasdaq-100 and its decision to hold Bitcoin could well be its future. The management may also decide to monetize or sell some of the Bitcoins listed therein in the future to retain its competitive edge within the niche markets and the traditional financial sector. But regardless of how the Bitcoin market develops at some point, MicroStrategy will for sure stay in the center of those changes.
