MicroStrategy holds a very pivotal role in the institutional adoption of Bitcoin and all eyes are on the company to know its next moves.
The value of MicroStrategy’s (MSTR) entire Bitcoin (BTC) holdings has grown more than double in value since the company’s first-ever purchase back in August 2020. The growth in MicroStrategy’s BTC holdings according to News.bitcoin.com comes on the back of the recent massive growth rally of Bitcoin that has seen its price skyrocket in the last days of 2020, and into the new year.
MicroStrategy was arguably one of the most prominent BTC bulls that helped changed the narrative about BTC investments amongst publicly listed firms in the United States and around the world. The company, with Michael Saylor as the Chief Executive Officer made its initial purchase of 21,454 BTC on August 11 as reported by Coinspeaker. That initial investment was valued at $250 million and marks the beginning of several other investments that catapulted MicroStrategy’s BTC Holdings to 70,470 BTC, all purchased for a total of $1.125 billion.
The bull run of Bitcoin has caused or driven the value of MicroStrategy’s BTC Holdings to about $2.4 billion, representing a growth of over 100%. As a listed company, the firm’s Bitcoin-backed treasury reserve policy has also fueled an increase in the company’s shares and market capitalization respectively. Back in August when the company made its foray into BTC, its shares were worth just about $135 according to News.bitcoin.com but at the time of writing, MSTR shares are trading at $388.55 with a market capitalization of $3.6 billion, up from the $1.3 billion in August.
The company’s bet on BTC as its store of assets in comparison with the United States Dollar is turning out profitable not just in favor of MicroStrategy’s investors but also in terms of the general valuation of the business intelligence firm.
MicroStrategy’s BTC Holdings: What Are the Firm’s Probable Future Plans
MicroStrategy Incorporated (NASDAQ: MSTR) holds a very pivotal role in the institutional adoption of Bitcoin and all eyes are on the company to know its next moves. From all of its bets in BTC as highlighted earlier, the company is already in a position to cash out big, and pumping more cash to buy Bitcoin may not necessarily be a likely move.
As many BTC critics have pointed out that the current bull run is a bubble that will burst in no time, a move by top institutional investors like MicroStrategy to liquidate a part or all of their holdings may stir a corresponding dip in the price of the asset as much as investing in the coin has proven to drive an increment in price.
MicroStrategy has only confirmed its interest to go long on BTC going by its $550 million Senior Convertible Notes issued to purchase BTC with a multi-year expiry. Plans to liquidate a part of their holdings following the profits accrued are however unclear at this time.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.