The year 2020 began turbulently for Bitcoin and the entire crypto market and the second half of the year was no less exciting: The post-halving Bitcoin bull market has officially started and while small investors can occasionally experience stomach ache from the increasing price fluctuations, it is particularly underlined A picture that is becoming increasingly clear to large investors and institutional investors.
The "money printing orgy" of the central banks, as self-made billionaire Mike Novogratz describes the current situation, is leading to a rethink, especially among long-term investors.
Confidence in the US dollar is waning, the stock market and the economy stumble, and even Warren Buffet is withdrawing more and more from the US banking market.
"Hard values" like gold, silver and of course Bitcoin are becoming even more important.
While institutional investors have been dealing more and more intensively with Bitcoin as inflation-protected, digital gold for a few months now, a special trend has been increasing since March 2020, which is now also becoming increasingly apparent in large companies:
Not only institutional, hedge funds and Co., but also more and more companies seem to have discovered Bitcoin for their corporate portfolios. Also noticeable: companies that have been involved in the crypto market for a long time suddenly rush into the market even more strongly and significantly more aggressively.
With this in mind, in our new series "The giants are getting in!" , Let's take a very close look at what Fidelity, PayPal, Mastercard and Co. are currently doing and why they are doing it!
It starts with a sensational report that went through the markets like a bang in August.
MicroStrategy: The largest publicly traded business intelligence company converts the majority of its corporate reserves into Bitcoin!
A billion dollar company caused a sensation worldwide on August 11, 2020:
With the purchase of 21,454 BTC for around 250 million US dollars, MicroStrategy makes Bitcoin the main component of the company's reserve policy.
Just a month later, the company announced that its board of directors had even updated it again and made another purchase of 16,796 BTC for $ 175 million.
The new policy also makes it clear that Bitcoin will now serve as the company's primary reserve alongside cash, cash equivalents and short-term investments.
“MicroStrategy has recognized Bitcoin as a legitimate investment (...) and accordingly made it the most important investment in its treasury reserve strategy. This investment reflects our conviction that Bitcoin, as the world's most widespread cryptocurrency, is a reliable store of value and an attractive investment (...). "
In addition to the pure function as a store of value, hMicroStrategy particularly emphasizes the network stability and general health of the Bitcoin ecosystem:
"We believe that Bitcoin's global adoption, brand awareness, ecosystem vitality, network dominance, architectural resilience, technical utility and community ethos are convincing evidence of its superiority as an asset class for those looking for a long-term store of value.
Bitcoin is digital gold - harder, stronger, faster, and smarter than any money that has preceded it. We expect its value to increase with advances in technology, increased adoption, and the network effect that has fueled the rise of so many killer categories in the modern era. "
says Michael Saylor, CEO of MicroStrategy.
Special fun fact: Michael Saylor spoke out clearly against Bitcoin in 2013 and even predicted its demise, which makes Saylor one of the most prominent "converted Bitcoin critics" today.
The next part of this series will also be exciting! A little tip: It's about a company that has studied Bitcoin more intensively in recent months than any other institution is currently!
Blog post from January 16, 2020Continue reading
Part 2 of the big year in review series from December 18, 2019Continue reading
Part 1 of the big year in review series from December 11, 2019Continue reading