A Nasdaq Company Just Bought $250million In Bitcoin

[BTC Future 3946]

 

MicroStrategy is a publicly-traded software and business intelligence company that is listed on Nasdaq with a stock market cap of 1,3Billion USD. It was a company founded during the dot-com era and one of the survivors of the dot-com bubble collapse along with Amazon, e-Bay and other online giants.

 

This company announced recently that due to fears of inflation and prolonged recession in the US economy it bought Bitcoins worth $250 million! 

In detail, the company reportedly bought 21.454 Bitcoins for $11.652,80 each, through an undisclosed OTC desk. 

The CEO of MicroStrategy, Michael Saylor, explained that his decision to allocate half of the company's cash into Bitcoin had to do with the digital currency features. Quoting him:

Quote

Bitcoin is digital gold — harder, stronger, faster, and smarter than any money that has preceded it.

A bold move by this company which seems to be also backed by Blackrock (owns 18% of its shares). Perhaps a sign that Bitcoin's bullish case is real, or a miscalculation and a huge bet that may create terrible consequences to this company as Bitcoin is extremely volatile and high-risk asset. Perhaps their market value now will depend on Bitcoin's price and it may act similar to a Bitcoin ETF. We will probably have to find out after a few years, although I am expecting more corporations and institution to follow as fears of high inflation are growing.

 

 

Edited August 12, 2020 by BTC Future

[Moaz 7239]

This is good news for Bitcoin users and it will positively affect the price of bitcoin, and there are many international companies such as MicroStrategy buying bitcoin for fear of the global economic recession due to the Corona crisis

[MuhammadSh 3067]

250 million dollars is really a huge amount! as an expert , i'd like to know your opinion if more companies and institutions accept using bitcoin in their financial transactions , would some banks and governments follow this step too!? and what would the effect would be on bitcoin's price after a few years.. 

Now i can believe the 2007 chart which you talked about in your last topic about bitcoin's price.. in my opinion , if more companies follow this step , so there would be more banks and governments follow that too and we will see new prices of bitcoin in the near future..

[Whited35 15285]

On 8/12/2020 at 4:20 PM, BTC Future said:

A bold move by this company which seems to be also backed by Blackrock (owns 18% of its shares). Perhaps a sign that Bitcoin's bullish case is real, or a miscalculation and a huge bet that may create terrible consequences to this company as Bitcoin is extremely volatile and high-risk asset. 

Must be a visionary CEO to take this bold decision because Bitcoin is digital gold. If that much amount of BTC held for a long time, maybe company will be managing to have excessive profits off BTC in future.You know, traditional financial system i.e. banks are not giving much interests for putting cash there but BTC might give profits more than ever expected. 

[BTC Future 3946]

1 minute ago, Whited35 said:

traditional financial system i.e. banks are not giving much interests for putting cash there but BTC might give profits more than ever expected. 

Banks offer so little interest that it is not worth holding money there. Stocks where a great traditional investment until now but it seems to be very unstable market lately and perhaps they will crash for 1-2 years after the November elections in America. It is a bubble when economy is collapsing and stocks making new heights and it won't be sustained for long. So what else is there? Gold and Bitcoin. They bought both by the way but most of their cash ($250 million) went to Bitcoin.

[Raqeebzy 6456]

On 8/12/2020 at 11:35 AM, BTC Future said:

MicroStrategy is a publicly-traded software and business intelligence company that is listed on Nasdaq with a stock market cap of 1,3Billion USD. It was a company founded during the dot-com era and one of the survivors of the dot-com bubble collapse along with Amazon, e-Bay and other online giants.

A company worth $1.3 Billion, investing in Bitcoin with $250 Million does not only seems crazy but it clearly shows how confidence the company has in cryptocurrency (bitcoin peculiar) compared to fiats; that's almost a quarter of the whole company shares. Things are actually looking very good and more bullish signal for the digital gold; very good step by this company and a good development for Bitcoin investors.

[BTC Future 3946]

On 8/13/2020 at 7:19 PM, Raqeebzy said:

Things are actually looking very good and more bullish signal for the digital gold; very good step by this company and a good development for Bitcoin investors.

There are many more institutions, companies and individuals investing. Perhaps this is the beginning. Grayscale for example is the vehicle for US institutions as pension funds to invest in cryptocurrencies. They buy shares of grayscale which are pegged to Bitcoin, Ethereum, etc. These are huge funds buying millions of dollars each time. 

[Masterrex 559]

Wow that's huge sum of money, more and more institutional investors are already seen the potentials of Bitcoin as an emerging store of value asset if the trend will continue I'm sure BTC price will continue to rally against the US Dollar and it will have a Domino effect in the entire crypto market. 

[BTC Future 3946]

9 hours ago, SilverF said:

is reflected that they have a profit of 9 million dollars .. Impressive.

Yep, they are already in profit. Although I am certain they are looking for the long run, perhaps at least 2-3 years investment. Huge amount though for their size. 

On 8/16/2020 at 2:02 PM, Animesh2391 said:

In my opinion, if more companies follow this step, there will be more banks and governments. 

Yeah that's what I think too. Institutions as pension funds are already rushing to buy. Banks too because they will open trading desks and custodial services. Not just in the US but all over the world (where Bitcoin is regulated). I think it is all connected now. The german law on crypto and banking, the latest Russian regulation, Grayscale adding other coins besides bitcoin. 

I didn't notice it when writing and reading about these events. 

Edited August 18, 2020 by BTC Future

[Ridam 7455]

The usd and other different national currencies has been adversely affected because of this Pandemics. And if we see inflanation in Usd all other would get affected from it. And investing 250M worth Bitcoin is really great investment for the company.

And as the Bitcoin are limited in number and not like usd, so if we see other many companies interested in buying Bitcoin the price would go to higher than we are expecting now.

[koussai999 1986]

I think that the high purchasing value of Bitcoin comes from those large companies that buy large quantities of Bitcoin and store them for very long periods of up to tens of years, which is the biggest reason for Bitcoin gaining its high value

[Guru2050 8284]

That's why, I don't by any means doubt the future of BTC and Crypto currency in general, it's a great coin with a bright future of becoming the best, most profitable, strong and smart currency in nearest future. There is high possibility BTC will surpasses fiat currencies

[Mehar446 280]

Yes its a very good news. We need a lot of such other adoptions to survive in the market

 Many other giants should also adopt bitcoins. 

[BTC Future 3946]

21 hours ago, Ridam said:

And investing 250M worth Bitcoin is really great investment for the company.

I think so too. I will try to learn details though on how they bought although I think it was through Grayscale Bitcoin Trust. Probably the only legit way currently for institutions and corporations to invest in cryptocurrencies.

[malik6314193 5449]

Now everyone knows about future of bitcoin so everyone is buying and holding bitcoin. Many experts says that in the end of this year bitcoin is crossing 15000$.

[BTC Future 3946]

On 8/19/2020 at 4:10 PM, malik6314193 said:

Now everyone knows about future of bitcoin so everyone is buying and holding bitcoin. Many experts says that in the end of this year bitcoin is crossing 15000$.

I have the same feeling. $15000 perhaps soon and then we go up and down until 2021 when perhaps a bull run begins. We need patience and probably good things will come.

[Swapzone 174]

250 million is a huge money. That's the 1% of total bitcoin supply. It is a great step towards adoption.  Even 100 such companies do this, the whole bitcoin supply will be taken. 

[Omar Ommeish 4872]

I think that this is a good decision by the company in order to protect its money from inflation in the global economy, in addition to that, it is good news for all Bitcoin traders because that will definitely increase the price of Bitcoin.

[1qDan 478]

It seems to me a risky move, we are talking about a transfer of the value of a company, to a market or volatile system like Bitcoin, basically they bought at the worst possible moment, if we take out accounts they have lost millions in recent days.

 

perhaps over the years it will be the best, but that does not eliminate the possibility of a future collapse.

[Captain Karim 0]

MicroStrategy invested in Bitcoin because it found it a non-inflationable asset, and this feature is very important in every investment.While every day a dollar is printed using paper and ink, we know at least that we have 21 million bitcoins, and I think a company like MicroStrategy knows exactly what to do. .

[Ahmet Özkaya 28]

Institutional purchases give the trust on Bitcoin.

[BaluDigital 84]

Actualmente estamos pasando por lo mismo y eso se llama movimiento de ballenas que tienden a subir el precio drásticamente y a subirlo a precios realmente grandes y mueven el mercado a un ritmo muy alto por lo que esto hace que bitcoin suba de precio muy rápidamente pero tenemos que tener cuidado porque subió rápido, se venderán en el punto alto y luego el precio caerá muy fuertemente

[TimopheyKa 3900]

In fact, this is a very large amount! I think with this volume of trading, they significantly increased the cost of bitcoin, as well as its demand. It seems to me that the bitcoin they bought - it will be launched in some transactions that will be actively developed, and give the opportunity to become even happier for some users!

[Ecoloco2020 55]

Hello, this news is very good, more and more institutional investors are investing in bitcoin and other cryptocurrencies, this will raise the value of the prices and confirms that this market is here to stay.

[Shaza Ahmad 1682]

MicroStrategy has invested in Bitcoin on the one hand, and the founder of Twitter has announced his investment in Bitcoin on the other hand, it seems that many global companies and the world's rich have finally believed that Bitcoin is a fact and not just numbers or fraud, perhaps 2021 will be the year of the new rise of the cryptocurrency market due to investment Many international companies in the crypto field.