MicroStrategy and Square Buying the Bitcoin dip, BTC/USD Steady above $50k
Michael Saylor, the CEO of the business intelligence firm, MicroStrategy, has revealed that his firm has purchased $1 billion more worth of Bitcoin. This takes their total ownership to 90,531 BTC translating to approximately $2.171 billion of Bitcoin at spot rates. Following this acquisition, the NASDAQ-listed firm is now the largest public company holding the digital asset, ahead of Square. On Feb 23, Square purchased another $170 million of Bitcoin pushing their total ownership of digital gold to $220 million, or slightly five percent of their cash, cash equivalents, and market securities as of the end of Q4 2020.
Bitcoin is mostly considered digital gold because of its fixed, known supply and the deflationary feature baked into the supply. Currently, in the fourth epoch, the network dispenses 6.25 BTC roughly every 10 minutes. Before May 2020, this stood at 12.5 BTC. Following last year's halving, prices have more than doubled, compensating for potential lost revenue due to lower rewards. Accordingly, analysts project the Bitcoin price to keep increasing with each halving and adoption, making it attractive for institutions. Most are following MicroStrategy and Square's steps of investing in BTC as part of their investment strategy.
Impact on the BTC Price:
Bullish. The BTC/USD price might have cratered from $58k to spot rates, but institutions are unfazed. Their heavy investment while crypto prices crater point to their unwavering commitment and confidence in Bitcoin prospects. Overly, this is bullish not only for Bitcoin but for crypto that's not widely adopted like traditional finance products despite being superior, offering more value for money.
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