MicroStrategy and Square Just Set Off A Massive Bitcoin Trend

MicroStrategy is the only enterprise analytics and mobility platform. The MicroStrategy platform supports interactive dashboards, scorecards, highly formatted reports, ad hoc query, thresholds and alerts, and automated report distribution.

Michael Saylor, CEO of MicroStrategy remembers the days his company could make a 5.5% return on overnight money (repo market). Michael remembers when savings account would give you a 6% yield on your funds. Michael recently stated on Real Vision that the risk free cost of capital and the risk premium, together made the totally cost of capital of about 12%. So the only option at his disposable was to buy back his own stock or buy another company outright. However, Michael said buying another company end bad 90% of the time. So Michael chose the best option at that point. In the past several months the company bought close to 500 million in Bitcoin as a hedge.

Square, Inc. provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. Square used 1% of its cash on-hand to buy Bitcoin.

Last week, company made headlines after executives found out that employees were buying Bitcoin for years under their personal accounts.

Stone Ridge Holdings Group (SRHG), an institutional asset management giant for financial advisors, institutions and insurance companies worth over $10 billion, announced yesterday that it has acquired 10,000 Bitcoin (BTC), equivalent to over $100 million, as part of its Treasury Reserve Strategy. SRHG made this public in a press release and stated that the purchase of Bitcoin was executed through its digital asset subsidiary New York Digital Investment Group LLC (NYDIG) and is held in its custody.

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In the UK, the Bank of England warned that they would need extra firepower to boost the economy after another wave of Covid-19 cases, bring the country closer to negative interest rates. So on Monday, Mode Global Holdings PLC, a public company that trades on the London stock exchange, announced that they will convert up to 10% of its cash reserves into the cryptocurrency as part of a long-term strategy hedge against fiat. The executive chairman, Jonathan Rowland said due their confidence in the long-term value of bitcoin has only increased as a result of fiat devaluation.

Fidelity Digital Assets (FDA) said diversifying an investment portfolio with bitcoin is especially essential now when benchmark interest rates globally are near or below zero. FDA also said publicly traded companies now hold over 600,000 bitcoins.

The number of bitcoin being bought is causing a liquidity issue on exchanges now. Bitcoin is now trading above $13,000. What happens to the price of bitcoin when the list below grows to 50 companies, then 100 companies???

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