Large MicroStrategy bets on BTC

Bitcoin as an asset has an unparalleled pedigree. The coin generated the largest revenue in the last decade and was unparalleled across the planet.

A bold step in the field of cryptocurrencies.

Investing in Bitcoin at the beginning of the last decade would have made a lot of people and businesses very rich, but not many of them had such foresight.

Now, with continued growth, normalization, and legitimation, Bitcoin is still viewed skeptically by large institutional and traditional investors. This alternative asset raises many concerns.

However, things may change, as news from us-based MicroStrategy, a business Analytics company that is considered the world’s largest independent public business Analytics company, showed that Bitcoin is a popular property.

The company made a significant purchase of more than 21,000 PTS, worth more than us $ 250 million, as part of an alternative asset acquisition strategy. The purchase of 21,454 coins is part of the company’s latest capital allocation strategy, following its financial results for the second quarter of 2020. Having fulfilled its financial obligations to shareholders at the expense of profit, the company implemented plans to invest about $ 250 million in an alternative asset class.

This is not only a big step on the part of the company, it is a bold step in the field of cryptocurrency. This has given bitcoin real legitimacy as an alternative investment class – something It has been striving for for a long time.

Beginning of a trend.

Bitcoin has been attracting large businesses and institutional investors for some time. A good example of this is the pursuit of a bitcoin ETF, which appeared at Winklevoss Twins back in 2016. This never happened, but other traditional products became popular.

There has been a massive boom in the growth of bitcoin derivative trading, with not only cryptocurrency providers offering services, but also major players such as CME, and more recently, Baakt.

The products are designed to offer PTS to institutional traders in a familiar way to experience the difference that this new asset class offers, such as greater volatility and a fully digital nature.

Even the simple investment in the cue ball that MicroStrategy is now making was not for institutional investors, although Greyscale has been offering its bitcoin trusts for many years and has successfully managed it.

What’s more, Bitcoin got more of a green light from names that matter in the world of Finance when Paul Tudor Jones stated that he supported Bitocin in his own portfolio and supported It overall to be a better performer.

The hedge Fund legend said he would only invest about 2 percent in his portfolio, but it seems to have sparked something.

All of these institutional investments come from forward thinking, as MicroStrategy CEO Michael Saylor further emphasizes:

These investments reflect our belief that BTC, as the world’s most widely distributed cryptocurrency, is a reliable means of saving and an attractive investment asset with longer-term growth potential than storing cash.

Since its creation more than a decade ago, it has become a significant addition to the global financial system with characteristics that are useful for both individuals and organizations. MicroStrategy recognized it as a legitimate investment asset that can outperform cash, and accordingly made Bitcoin the primary holder of its Treasury reserves strategy.