In response to the novel coronavirus, central banks around the world have issued amounts of currency to encourage private consumption and business investment. This has led to a growing movement by companies and investors to turn cash into traditional financial assets such as stocks and bonds. The price of Bitcoin has been rising through the second half of 2020, surpassing the year called the cryptocurrency bubble of 2017. The price of Bitcoin (BTC) had exceeded 20,000 dollars and renewed its record high. And one of the factors behind the price increase later this year is the purchase of bitcoin by major corporations. Two publicly traded U.S. companies that have made huge investments in Bitcoin this year are Square and MicroStrategy. This article will focus on “corporate bitcoin investment” and the reasons why these companies are investing in bitcoin and anticipate future developments.
Considering the current state of Bitcoin investment by U.S. companies
MicroStrategy, which announced a major Bitcoin investment this year, was born in 1989 and is a company that develops and provides business intelligence (BI) tools for companies in various industries. Microstrategy conducted an IPO (initial public offering) of $12.4 million per share in 1998.Microstrategy’s largest shareholders include BlackRock and Vanguard, the world’s largest asset management funds. This means that Black Rock and Vanguard are also indirectly investing in Bitcoin.
By the way, why did Micro Strategy invest in Bitcoin?
MicroStrategy announced on August 11, 2020, that it had purchased 21,454 BTC at an acquisition cost of approximately $250 million, including fees and expenses. In a MicroStrategy announcement, CEO Michael Saylor explained why he invests in bitcoin and his perceptions:
Michael Sailor explained why he invested in Bitcoin by saying, “Bitcoin investing is part of MicroStrategy’s new capital allocation strategy. It aims to maximize the long-term value of our shareholders, and this investment is a reliable way to store value, as the world’s most widely used cryptocurrency.
Square Bitcoin Investing
On the other hand, Square, which also made a large-scale Bitcoin investment, is a mobile payment company headquartered in San Francisco, California, which was born in 2009.
It got listed on the New York Stock Exchange for $11.2 per share. The company allows customers to transact in Bitcoin. The payments company said in its third-quarter results those customers bought $1.6 billion in bitcoin, bringing $32 million in profits to the company.
Tesla
Bid Price: $1,500,000,000 / Today Value: $1,599,098,470. Tesla (TSLA) said it has invested $1.5 billion in bitcoin (BTC-USD) and will allow customers to use bitcoin to buy their cars. The movement also enhances another avenue for those seeking to invest in Bitcoin — holding Tesla’s stock. Tesla is the largest electric car and solar panel company in the United States and the world’s first manufacturer of self-driving cars. CEO Elon. Musk announced in February that he would invest $1.5 billion (about NT$42 billion) to buy bitcoin and would accept the purchase of his electric vehicles in this digital currency. As a result, Bitcoin rose 16% to $44,795.2 on the day, pushing the price of Bitcoin to a new peak.
Riot Blockchain, Inc.
Total holdings: 1,175 / BTC total: 0.006%. Bid price: USD 7,200,000 / Today Value: USD 39,501,263 / Riot Blockchain, Inc(RIOT. US), formerly known as Bioptix, Inc., the company and its subsidiaries focus on building, supporting, and operating a blockchain technology ecosystem involving digital currency mining operations, primarily Bitcoin mining, and are one of the largest bitcoin miners in the United States.
Meitu
Total holdings: 940 / Total BTC Ratio: 0.004%. Bid price: $49,500,000/Today’s value: $31,630,258/ .Meitu Xiuxiu is an image processing software produced by Xiamen Meitu.com Technology Co., Ltd. in 2008,Meitu Group purchased 15,000 units of Ether and 379.1214267 units of Bitcoin.
Conclusion
More and more listed companies are listing Bitcoin as their own company asset allocation. These institutional investors are gradually identifying with cryptocurrencies and their future development. The top holding companies still have a fairly high return on investment. These companies are optimistic about the future development of bitcoin, next bitcoin price rise and fall are towards a bull market or a bear market downward development. But also pay attention to other oil trading options on Bitcoin Era App.