Microstrategy could be setting the path for other high portfolio firms to venture into making Bitcoin investment a major part of their portfolio following positive vibes that have rallied behind the company since declaring interest in Bitcoin.
According to a filing with the Securities and Exchange Commission released on January 8, U.S major investment bank Morgan Stanley has acquired 792,627 shares in Michael Saylor’s business intelligence firm MicroStrategy. This purchase makes up a 10.9% stake in the company. The purchase reportedly took place on Dec. 31.
Microstrategy’s Massive Bitcoin Investment
Recall that Microstrategy made a massive investment in Bitcoin last year up to the tune of 70,470 Bitcoin as of December 31st. Earlier, The firm announced a $400 million securities offering with the stated purpose of raising funds to buy more Bitcoin. As of the time of writing, the firm’s Bitcoin fund is worth over $2.6 billion. The firm reportedly has invested in several other altcoins as well, totaling the firm’s holdings in digital assets over $3Billion.
Since this major move, the company’s share price has been on a steady uptick. As of press time, the share price (MTSR.: Nasdaq) is up over 250.98% in the past three months and is currently gaining 48.78% YTD. This movement seems to have capitalized on Bitcoin’s bull-run to edge ahead, attracting the likes of Morgan Stanley and other top profile corporate bodies.
Microstrategy’s Bitcoin Move Seems To Be Well Calculated
CEO of Microstrategy Michael Saylor first announced the firm’s decision to make Bitcoin its primary reserve asset sometime in August. He reportedly stated that:
“This is not a speculation, nor a hedge. It is a deliberate corporate strategy to adopt the Bitcoin Standard.”
Major institutional investors like Morgan Stanley have braced up to crypto-assets over the past year. Most people have attributed Bitcoin’s recent bull market to the influx of institutional investors, as compared to the retail FOMO that was critical to BTC’s 2017 bull-run.
Notably, Michael Saylor was one time a major Bitcoin critic who believed that the asset was heading to zero. But over time Bitcoin seems to have proven all its critics wrong, turning most of them to true believers.