The software company MicroStrategy is receiving the attention of the main players in the financial world due to its commitment to Bitcoin. Almost three years ago, this company became one of the first publicly traded entities in the US to integrate BTC into its financial strategy. Since then, he has continued to add BTC to his treasury.
Looking for a way to get exposed to Bitcoin
Data of Bitcoin Treasures indicates that MicroStrategy has the largest supply of BTC of any publicly traded company at $3.9 billion or 140,000 BTC. This represents 0.66% of the entire Bitcoin supply.
As a result, buying MicroStrategy shares is a proxy used by US companies to gain exposure to Bitcoin. In this country, large entities have limited options to bet on the long-term appreciation of BTC.
The US Securities and Exchange Commission (SEC) has refused to approve a spot Bitcoin exchange-traded fund (ETF), forcing companies to gain indirect exposure. As shown in the chart below, several companies are using this strategy.
These companies include the financial institution Bank of America, which bought more than 226,506 shares of MicroStrategy, and fund and asset managers BlackRock and Fidelity, which bought 10,800 and 96,800 shares, respectively, in the first quarter of 2023 alone.
Capital Research and The Vanguard Group are two of MicroStrategy’s largest shareholders and remain bullish on the company, with 154,100 and 28,000 shares purchased during the same period. The capital injection received by MicroStrategy has had an impact on its price.
The company is tied to the price of Bitcoin. Thus, it has seen a downward trend over the past year, but continues well above its 2020 low of around $110 following its Bitcoin treasury strategy. The correlation is poised to benefit the software company and its investors if BTC can continue to rise from its yearly lows.
In 2020, MicroStrategy started a trend that has been going strong even as the price of BTC is trending lower. The number of companies holding cryptocurrency as part of their treasury has increased exponentially since 2018.
Now, for the first time in months, the company has announced new BTC purchases and a new edition of its Bitcoin and Lightning for Corporations events. Whether the event can spur more companies to adopt cryptocurrency remains to be seen.
