Key Takeaways
- MicroStrategy’s shopping spree has resulted in the acquisition of 423,650 BTC, which is estimated to be worth $43.9 billion.
- As a result of this acquisition frenzy, MicroStrategy’s stock price has become dependent on the BTC price fluctuations.
- The famed company is currently preparing for its inception into the Nasdaq-100, which will take place on the 23rd of December.
MicroStrategy, one of the leading software companies in the world has been the talk in recent weeks due to their BTC shopping spree in the market. MicroStrategy is a leading company that provides software to help businesses analyze data and make strategic decisions. In this article, we will delve deeper into them, their BTC shopping spree in the market, and what impact they had on the crypto market.
Who Is MicroStrategy?
MicroStrategy is an American software development company that was founded by Michael J Saylor, Sanju Bansal, and Thomas Spahr in 1989. The company mainly focuses on providing software that analyzes business data. It also specializes in mobile software and other cloud computing services.
It was in 2020 that the cryptocurrency investments by the famed company kicked into gear. Since then, they have invested a lot in the crypto market, especially in the BTC market. Through these high investments, the company soon became one of the leading Bitcoin treasury companies in the world.
MicroStrategy & BTC Shopping Spree
MicroStrategy started its BTC acquisition plan in mid-2020. Due to concerns like inflation, the company initially invested $250 million. However, since then, the company has continued to accumulate BTC, making it one of the largest corporate holders of the original cryptocurrency.
The major business intelligence giant MicroStrategy has purchased over 21K BTC for about $2.1 billion in the past weeks. Over the past month, the company has added more than $170K BTC to its reserve. This brings their total BTC holdings to over 423,650 BTC, which is estimated to be worth $43.9 billion.
Impact Made By Microstrategy On Crypto Market
With its Bitcoin acquisition, MicroStrategy has managed to make a significant impact on the crypto market. Here are some of the aftermaths of their rampant shopping spree in the market.
1. Increased Institutional Adoption
MicroStrategy has started BTC acquisition in 2020. Since then, they have accumulated over 400K BTCs, which makes them one of the largest cooperate holders of the coin. This shopping spree has somewhat started a chain reaction that resulted in the increased institutional adoption of cryptocurrencies like BTC.
2. Positive BTC Market Sentiment
As MicroStrategy purchases BTCs in large quantities in one single buy, it can potentially increase the market value of the coin by a great degree. The recent purchases of the coin were during their bull run. This resulted in boosting the positive sentiment of the coin in the market, which acted as a sort of catalyst for the coin’s price surge in the market.
3. MicroStrategy Stock Price
Since their acquisition of BTC has crossed a certain threshold, MicroStrategy’s stock price become somewhat dependent on the price of the famous crypto coin. Since 2020, the company’s stock has surged above 500%. This is larger than the growth of many tech companies out there and is strongly due to their BTC holdings. It also depicts how cryptocurrencies as a whole can have an impact on traditional stock exchanges.
4. Nasdaq-100
MicroStrategy has recently turned the heads of a lot of prominent investors through its inclusion into the Nasdaq-100. It becomes effective following the 23rd of December. It is a major achievement for the tech giants. Following this major announcement, the company’s stocks also experienced a significant surge. This may increase after the official listing comes to pass.
Final Remarks
MicroStrategy’s aggressive investment into the BTC played a major role in the remarkable growth it experienced in recent years. Not only that it also allowed them to secure the position as one of the top tech companies out there. This achievement was mainly due to the fact that such an old company like MicroStrategy was able to successfully integrate digital currencies and blockchain technologies into their businesses.
MicroStrategy has also played a key role in influencing many other companies to adopt crypto through their BTC acquisition strategy. However, if the BTC were to collapse in the future due to some geopolitical tensions or other major factors, it could cause significant damage to the famed company. As of now, we can only wait and see what the future entails for the original cryptocurrency and the tech giants, MicroStrategy.
