Financial Institutions Invest $75 Million in MicroStrategy’s Bitcoin Holdings
Several prominent financial institutions invested $75 million in MicroStrategy. The company, which specializes in business intelligence, has been acquiring substantial quantities of Bitcoin over the last three years.
MicroStrategy’s Bitcoin holdings currently stand at 140,000 BTC, worth approximately $3.9 billion. This makes it the largest holder of Bitcoin among all public companies, with its holdings representing 0.66% of the total Bitcoin supply.
According to a report, the recent purchase of MicroStrategy’s shares by financial institutions is a result of the US Securities and Exchange Commission’s (SEC) decision not to approve a Bitcoin spot ETF. As these institutions expect Bitcoin prices to rise, they are buying shares in MicroStrategy as an alternative.
In the first quarter of last year, Bank of America purchased 226,505 MicroStrategy shares, while BlackRock purchased 10,800 shares and Fidelity bought 96,800 shares. Capital Research and Vanguard Group also purchased 154,100 and 28,000 shares, respectively, during the same period, helping to boost MicroStrategy’s share price.
MicroStrategy is not only investing in Bitcoin but also helping other businesses adopt the cryptocurrency. It recently launched a Bitcoin Lightning Network service for businesses, which allows for faster and cheaper Bitcoin transactions.
The recent investment by financial institutions in MicroStrategy is a clear indication of the growing interest in Bitcoin among institutional investors. As more companies like MicroStrategy continue to accumulate Bitcoin, it remains to be seen whether the cryptocurrency’s price will continue to rise.
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