A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."
As a result of the announcement by MicroStrategy about purchasing BTC, the company’s shares jumped 9.12% yesterday.
MicroStrategy Incorporated (NASDAQ: MSTR), the largest independent publicly-traded business intelligence company, yesterday announced that it purchased 21,454 BTC worth $250 million, inclusive of fees and expenses.
The company said that the decision to make Bitcoin its primary treasury reserve asset was in accordance with its long term investment strategy.
“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” said Michael J. Saylor, CEO, MicroStrategy Incorporated. “This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”
Bigger Picture of MicroStrategy BTC Investment
As a result of the news, its shares jumped 9.12% yesterday to close the day trading at $134.89. Its shares were initially impacted by the onset of the coronavirus pandemic that largely disrupted the normal supply and demand chain.
However, in the past three months, the company has seen its share value rise. Perhaps due to investors seeking their advice on the general trend of the market.
The company happens to have access to the market inside information, hence promptly acting beforehand. With crypto adoption, fear and greed at their peak, it is an indication a possible bull rally is awaiting that will be fueled by institutional investors, regulators and also retail investors.
“MicroStrategy spent months deliberating to determine our capital allocation strategy. Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ― risks that should be addressed proactively,” Saylor added.
If you want to know more about Bitcoin and altcoins, please follow the link.