Once again, MicroStrategy’s stock price jumped. It was after announcing it has bought a total of $425 million in Bitcoin to date. Nevertheless, the question is whether the companies will follow their footsteps.
The Nasdaq-listed firm MSTR (MicroStrategy) purchases hundreds of millions of dollars’ worth of BTC (Bitcoin). Thus, it resulted in its company stock price to gain over nine Percent on September sixteen.
First, MicroStrategy announced the firm would purchase Bitcoin on August eleven. After that, its stock price surged by over Ten Percent.
MSTR’s price has once again risen similarly. It happened after confirming yesterday that it doubled down on adopting a Bitcoin standard. It bought over 38,000 Bitcoin worth $425 million at an average price of $11,111.
CEO Michael Saylor told Coindesk that they just had the awful realization. The realization is that they were sitting on top of a $500 million ice cube that is melting.
That is not speculation. Moreover, it is not a hedge. To adopt a bitcoin standard, it was a deliberate corporate strategy.
A pseudonymous software engineer, Datavetaren, said that other companies would follow MicroStrategy.
He wrote that MicroStrategy adopts a bitcoin standard. Thus, other companies will most probably follow. In the end, central banks will follow. The Switzerland central bank will be the first most probably. It is a new gold standard for the digital age. For governments, a neutral store-of-value will create more checks.
Joe Weisenthal is a host of ‘what had you miss?’ on Bloomberg. So, he said that since 2013, the revenue of MicroStrategy steadily declined.
The company needed new ways of vamping up and gaining exposure to Bitcoin. Moreover, the company needed it to make Bitcoin its primary treasury asset. It is the companies one of its major strategies.
Typically, real estate and safe-haven asses like gold is a hedge against inflation.