Bitcoin has been stealing headlines lately as all corners of the world seem to be boarding the cryptocurrency train. Among those buying a ticket, are big institutional investors, with deep pockets. One such institution is Microstrategy.
If you’ve never heard of Microstrategy, it’s a company that specializes in providing analytics solutions for businesses to help them transform. The big meat on the plate at MicroStrategy as of late is Bitcoin.
“MicroStrategy is the first publicly traded company to invest significant treasury assets in Bitcoin.” (MicroStrategy.com)
MicroStrategy is in a position to make things very hopeful for the crypto world. The company, after entering the crypto space last year, and declaring Bitcoin a crucial treasury asset, has announced a corporate roll-out strategy for Bitcoin. The company’s CEO Michael Saylor announced that MicroStrategy will be releasing a corporate playbook to help other companies implement Bitcoin into their corporate structure.
“We are going to open source our #Bitcoin Corporate Playbook, an array of documents covering governance, legal, financial, technical & accounting considerations.” (Cryptoslate.com)
The playbook is set to be released on February 3rd during an event called Bitcoin Summit 2021. MicroStategy is essentially laying out the same purchase strategy that the company used when making its foray into Bitcoin.
So, what does this mean for the cryptocurrency and investors? Well, it’s no surprise that Bitcoin is projected to reach astronomical numbers. Large institutions have gotten on board with Bitcoin over the past year especially. But with MicroStrategy launching this latest initiative, those astronomical numbers may come sooner than previously thought.
Cathie Wood, Chief Investment Officer of ARK Invest had this to say in a video interview:
“If companies in the S&P 500 were to put 1% of their cash into Bitcoin, that would increase the price of Bitcoin by $40,000… If we saw 10%, that would add $400,000.”
Just 10% and Bitcoin would jump by $400,000. MicroStrategy has already put ALL of its cash in Bitcoin and is encouraging other companies to do the same. Top-tier companies such as Fidelity, Coinbase, and Binance to name a few, will be in participation at the event, along with Greyscale who had recently added a whopping $120 million worth of Bitcoin to its assets. The influx of money that this event could potentially provoke for Bitcoin is epic, and after the summit on February 3rd, the upward climb for Bitcoin’s price action could start soon after. Institutional investors are major influencers in price, and could also contribute to making Bitcoin’s price action less volatile, and more fitting of a stable reserve currency.
Following the crippling of the economy due to the events of last year, financial institutions are looking to migrate away from the fiat dollar, as inflation fears grow. With the help of MicroStrategy, they will be migrating to Bitcoin to hedge against this threat.
Bitcoin has come a long way from when it started at $0.30 roughly ten years ago, and now it’s literally breaking the bank, as it dominates the financial sector.
Contributed by Garrett S.