Typically, Bitcoin could act as a hedge against inflation in the Cryptocurrency market. Moreover, it can potentially outperform many asset classes over time.
Barry Silber is the CEO of Grayscale. He said that the purchase might become the worst or the smartest CEO decision of all time in the market.
There is an enormous amount of risk MicroStrategy. It will take to secure such a large holding of Bitcoin. Nevertheless, if Bitcoin will grow explosively over the long term, it can be a significant catalyst.
Silbert said that it would go down in history as one of the worst or smartest CEO decisions. Books and Case studies will be written concerning it. Moreover, he added that in any way, it took enormous guts for a public company CEO, and he commends him for the courage.
Nevertheless, there is one problematic sentiment around MSTR stock. It is that some celebrate it as a loophole for an ETF (exchange-traded fund).
Compound Finance’s general counsel Jake Chervinskey said that such a loophole is non-existent. Nevertheless, the company has considerable exposure to Bitcoin. Also, Chervinskey noted that if the firm continues to buy more Bitcoin, the United States SEC (Securities and Exchange Commission) could start inquiring about it.
Furthermore, he added that no, there is not a loophole in the federal securities laws allowing a publicly-traded company to convert itself into an ETF of Bitcoin without the approval of the SEC. There will be more chance that the SEC will start asking questions that @Nasdaq does not want to answer, the more bitcoin $MSTR buys.
SO MicroStrategy’s stock price jumped in the market. It announced that it had bought a $425 million in Bitcoin to date. Nonetheless, the question is if the other companies will follow its’ footsteps.
MicroStrategy (MSTR) is a Nasdaq-listed company. It purchases hundreds of millions of dollars’ worth of Bitcoin (BTC).
That is the current news of the market.