MicroStrategy Purchases Over $400 Million Worth of Bitcoins

Bitcoin has been trading below the $60k level for the past two weeks, and investors are taking advantage of the dip to buy more coins. Market analysts still expect BTC to rally before the end of the year.

MicroStrategy Adds Over 7,000 Bitcoins to its Balance Sheet

MicroStrategy is perhaps the most Bitcoin bullish company in the world, evident by its huge investment in the cryptocurrency. Over the past few months, the company has invested billions of dollars into the leading cryptocurrency.

The past week saw Bitcoin drop below the $55k level following huge losses recorded by the financial markets. MicroStrategy CEO Michael Saylor has now revealed that the company had taken advantage of the dip to add more bitcoins to its balance sheet.

According to Saylor, the company spent $414 million in buying 7,002 bitcoins. MicroStrategy bought the coins yesterday, 29 November, at an average of $59,187 per Bitcoin. He added that following this latest acquisition, MicroStrategy now holds 121,044 bitcoins, and it used $3.57 billion to acquire them.

MicroStrategy is already in profits regarding its cryptocurrency investment. Its 121,044 bitcoins are worth $6.81 billion, a profit level of nearly 100%. Saylor has always been bullish about Bitcoin and believes the cryptocurrency will be even more valuable in the future.

Bitcoin Still Struggling Below $60k

Bitcoin has underperformed in recent weeks. BTC has been struggling below $60k despite recent news that El Salvador and now MicroStrategy have spent big in adding more bitcoins to their balance sheets.

BTC/USD chart. Source: FXEMPIRE

BTC’s technical indicators are still looking bearish despite the recent recovery. Bitcoin is slightly trading above its 100-day simple moving average at $54,363, indicating that its current support level is weak. The MACD line is below the neutral zone, suggesting further bearish performance, while the RSI of 41 shows that Bitcoin could be heading into the oversold territory.

Bitcoin’s short-term outlook remains bearish, but market participants are optimistic that the leading cryptocurrency will perform excellently in the medium and long term. Year-to-date, BTC’s value has increased by more than 95%, outperforming other major global financial assets like Gold.

Michael Saylor: Bitcoin to Replace Gold This Decade

With bitcoin hovering below $60,000, the cryptocurrency community has shifted its attention toward building once again instead of price. Bitcoin bull Michael Saylor is an exception. The MicroStrategy CEO whose company holds more than 114,000 bitcoins on its balance sheet and is not done buying is looking through a long-term lens and is bullish as ever on the BTC price.

Saylor talked to CNBC about bitcoin as a store-of-value asset and his long-term view on the BTC price. He gave a scenario in which the bitcoin price doubles on an annual basis until it flips gold at the end of the current decade.

From there, he expects that it will “flip monetary indexes” as well as some bonds, real estate and equity before emerging as a $100 trillion asset class. At that point, bitcoin would comprise 5-7% of the U.S. economy, Saylor explains, suggesting that there will only be a handful of fiat currencies left standing, including the U.S. dollar, euro and the CNY.

 

Saylor also believes that as the bitcoin price increases, volatility will decrease.

 

Bitcoin vs. Gold

With inflation at a 30-year high and not expected to abate anytime soon, store-of-value assets like bitcoin and gold are out front. Gold has done what it is designed to do and has been inching higher, with the price currently hovering at about $1,860. Bitcoin recently touched on a fresh all-time high but is currently experiencing a downdraft.

Saylor said there’s a war going on for the “non-sovereign bearer instrument store-of-value” title, with bitcoin one side vs. gold and silver on the other. Even though gold’s market cap trounces that of bitcoin at $10 trillion vs. $1 trillion, bitcoin is winning and will continue doing so, according to the MicroStrategy chief. He pointed to the nimble nature of digital gold as well as the speed in which it can be transacted vs. bars of gold, not to mention the lower costs associated with the digital asset.  Saylor predicted,

“It’s pretty clear, digital gold is going to replace gold this decade.”

The bitcoin price is up more than 120% since about mid-July.

Apple Chief Tim Cook Reveals He Owns Some Crypto

Now that bitcoin and Ethereum have entered new record territory, the topic is fair game in the mainstream. Technology entrepreneurs have been on board with bitcoin for a while, and more executives are starting to jump on the crypto bandwagon.

Most recently, Apple CEO Tim Cook tipped his hand to his crypto portfolio. CNBC’s Andrew Ross Sorkin asked Cook whether he owned any bitcoin or Ethereum, in response to which the Apple chief said he did. Apparently Cook didn’t just catch bitcoin fever and has been interested in the market “for a while,” saying,

“I think it’s reasonable to own it as part of a diversified portfolio.”

While he didn’t offer details, it was enough to trigger a response from the cryptocurrency community. Bitcoin billionaire Tyler Winklevoss is already wondering, ‘When Dogecoin?’

 

Meme coins have become increasingly popular for investors and businesses alike. Fellow tech billionaire Elon Musk has been supportive of Dogecoin and recently revealed that it’s the only meme coin he owns. The Tesla chief also has some bitcoin and Ethereum in his crypto portfolio.

Fellow tech entrepreneur Mark Cuban is another Dogecoin fan, preferring the meme coin as a medium of exchange over bitcoin. Cuban believes bitcoin’s strongest use case is as a store of value, rivaling precious metal gold.

Crypto Jobs

Cook’s crypto disclosure might not come as a complete shock. Apple has been known to list crypto-related openings on job boards for roles such as crypto software engineers.

In addition, e-commerce giant Amazon could potentially be inching closer to crypto adoption. Amazon Web Services is looking to hire a digital asset specialist who will be engaging with companies that are transacting in tokens such as cryptocurrencies, CBDCs, and NFTs.

Apple & Crypto

MicroStrategy CEO Michael Saylor would like to see Apple go deeper down the bitcoin rabbit hole. He tweeted that if Cook’s company would add bitcoin support to the iPhone and convert the balance sheet to BTC, like MicroStrategy has done, “it would be worth at least a trillion dollars to their shareholders.”

While it worked for MicroStrategy, investors might not want to hold their breath on Apple following suit. Cook said in response to a question about Apple,

“I wouldn’t go invest in crypto, not because I wouldn’t invest my own money, but because I don’t think people buy Apple stock to get exposure to crypto.”

Apple shares are trading fractionally higher on the day.

MicroStrategy’s Market Cap Balloons Amid Bitcoin Bet

MicroStrategy was a first mover to add bitcoin to its balance sheet, and the company has never looked back. Now Michael Saylor, MicroStrategy’s CEO, has tipped his hand to the company’s future plans, which are likely to include buying more bitcoin. Based on MicroStrategy’s stock price, investors can’t get enough of bitcoin either.

After buying approximately 9,000 bitcoins in the third quarter,  MicroStrategy is prepared to raise more capital for its bitcoin plans. Saylor stated in the company’s Q3 earnings report,

“We will continue to evaluate opportunities to raise additional capital to execute on our bitcoin strategy.”

The company doled out about $420 million for the bitcoins in Q3 at an average price of $46,876 per coin, bringing its total to approximately 9,000 coins purchased in the quarter. Meanwhile, the bitcoin price is currently trading above $61,000. MicroStrategy’s approach is to buy and hold bitcoin for the long term regardless of any short-term blips along the way.

Long-Term View

The third quarter came to a screeching halt before bitcoin embarked on its latest bull run in which it has tacked on close to 40% since late September. As a result, MicroStrategy actually reported impairment losses of more than $750 million related to its bitcoin portfolio in the quarter.

Investors seem to be focused on the long-term as well and have rewarded MicroStrategy for its bitcoin exposure. MicroStrategy’s market cap has ballooned by nearly 90% year-to-date to $7.5 billion as signs of bitcoin adoption have emerged. Today shares are up 2%.

Crypto Adoption

Billionaire tech entrepreneur Mark Cuban is doing his part to accelerate bitcoin adoption on the retail side. The NBA’s Dallas Mavericks team, of which Cuban is the owner, has promised to direct $100 in bitcoin to fans who download a crypto trading app called Voyager. To qualify, users must not only download the app but also open an account, deposit $100 and complete a trade.

Dallas Mavericks Digital Content Manager, Bobby Karalla, was quick to point out that participants can also buy meme coin Shiba Inu on the Voyager app. Shiba Inu has risen to stardom in the cryptocurrency community this week as its market cap has skyrocketed past Dogecoin’s in a surprising run.

Meanwhile, Adam Aron, CEO of movie chain AMC Entertainment, is polling his followers about demand for Shiba Inu payments at the theater.

MicroStrategy Shares Rise as Bitcoin Bet Pays Off

Enterprise software company MicroStrategy was a first-mover to adopt bitcoin on its balance sheet. The company made the move over a year ago, and it has paid off in spades as its bitcoin investment has ballooned in size.

Now that the bitcoin price has attained a fresh all-time high of more than $65,000, MicroStrategy’s stock is rallying too. Shares of MicroStrategy increased 4.2% on Wednesday to $758. So far this year, the stock has nearly doubled. And over the past 12-month period, the stock has climbed more than 300%. In the same period, the bitcoin price has soared over 400%.

MicroStrategy’s stock reclaimed some lost ground after falling on Tuesday, the day that the ProShares bitcoin futures ETF started trading. MicroStrategy is considered another way for investors to play the cryptocurrency market, especially if they don’t want to take the plunge into bitcoin just yet.

Bitcoin Portfolio

MicroStrategy owns more than 114,000 bitcoins on its balance sheet. The value of the investment has about doubled in size from approximately $3 billion to over $6 billion. And according to MicroStrategy CEO Michael Saylor, the company is holding tight.

MicroStrategy is not the only company with bitcoin on its balance sheet. A year ago, Jack Dorsey’s payments company Square followed suit. After pouring more than $200 million into bitcoin in total, Square’s holdings are valued at $530 million, reports indicate.

Now Square is exploring the launch of a bitcoin mining operation, which is the process by which new coins are created and the network is secured. A recent tweet by Dorsey of the number “705742” has the cryptocurrency community convinced that it is bitcoin related, though the Square and Twitter CEO is keeping his cards close to the vest.

More Potential Gains Ahead

Both MicroStrategy and Square could potentially ride the crypto wave higher next week when a second bitcoin futures ETF is expected to make its debut. The VanEck Bitcoin Strategy ETF, which will trade under the ticker symbol XBTF, has received the regulatory clearance to begin trading in the coming days.

 

The investment management firm is also waiting on pins and needles for the U.S. SEC’s verdict on a VanEck “physical bitcoin” ETF, a decision that according to director Gabor Gurbacs is expected in November.

Cryptocurrency Prices Tumble and Exchange Trading Falters as Snags Crop Up

Shares of blockchain-related firms also fell as crypto stocks were hit by trading platform outages. But the major focus was on El Salvador, where the government had to temporarily unplug a digital wallet to cope with demand.

Bitcoin, the world’s biggest and best-known cryptocurrency, tumbled more than 17% to $43,000 before paring some losses to trade down 9.20% at $47,140.27. Earlier bitcoin had hit a session high of $52,948.00.

Smaller rival ether, the coin linked to the ethereum blockchain network, fell 11.99%.

Major cryptocurrency exchanges Coinbase Global Inc and Kraken said they faced delays in some transactions on their platforms.

Coinbase said some transactions were delayed or canceled at “elevated rates” and that “our apps may be experiencing errors.” The exchange later said issues with Coinbase card swipes were resolved and that transactions were going through normally.

The Gemini exchange said it temporarily entered a full-maintenance period to address an exchange-related issue that caused performance trouble.

Coinbase shares slid 4.02%.

Anything related to cryptocurrencies appeared to suffer. Cryptocurrency miners Riot Blockchain fell 7.38% and Marathon Digital Holdings slipped 7.76%.

Shares of MicroStrategy Inc, a BTC buyer and business intelligence software firm, fell 7.64%.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Herbert Lash in New York, additional reporting by Saikat Chatterjee in London and Aaron Saldanha in Bengaluru; editing by Sujata Rao and Rosalba O’Brien)

MicroStrategy Shows How Bullish It Is With Bitcoin By Adding $177 Million Worth Of BTC To Its Balance Sheet

Corporate entities have started entering the cryptocurrency market, but none of them is as bullish as MicroStrategy.

MicroStrategy Leads The Way In Terms Of Bitcoin Investment

MicroStrategy has shown again why it is the most bullish corporate entity currently present in the cryptocurrency space. Michael Saylor has spearheaded the company’s entry into the cryptocurrency market, and MicroStrategy has been hungry for more ever since.

The publicly-traded company revealed yesterday that it had bought an extra 3,907 BTC for a total of $177 million. Following this latest development, MicroStrategy has now spent $2.91 billion in buying bitcoins, and it now holds 108,992 BTC.

The average price of each Bitcoin is around $26,769. However, in Bitcoin’s current value, the 108,992 BTC represents approximately $5.3 billion, implying that the company has recorded more than 70% profit since it started buying Bitcoins.

Michael Saylor and his MicroStrategy have been one of the biggest players in the cryptocurrency market. The company holds more bitcoins than any other corporate entity in the world, despite buying BTC for the first time since June.

The business intelligence software company started investing in Bitcoin last year. Its entry has convinced a few other companies, such as Elon Musk’s Tesla and SpaceX companies, to also buy bitcoin and hold them in their balance sheet.

MicroStrategy is playing the long game with Bitcoin, and Michael Saylor has the backing of the investors. He has been raising funds to buy more bitcoins, and investors have been more than willing to open their checkbooks and hand him what he wants.  The company believes in Bitcoin’s future and is betting big on it.

Bitcoin Drops Below $48k

The cryptocurrency market has slightly retreated after recording wins over the weekend. Bitcoin touched $50k a few days ago, but it is now down by 3.2% today and trading just above the $47,700 region.

BTC/USD chart. Source: FXEMPIRE

Unless the market experiences a comeback, Bitcoin could slip further towards the $45k mark over the next few hours or days. However, it could also recover and rally towards the $50k level once again. The MicroStrategy didn’t do much to overturn the bearish sentiment in the market.

MicroStrategy Buys More Bitcoin Near Peak Levels

The bitcoin price might be trading closer to its all-time high, but that is not stopping one BTC bull from buying at these levels. Michael Saylor, CEO of MicroStrategy, announced that his enterprise software company has just scooped up nearly 4,000 bitcoins for approximately USD 177 million.

Saylor, an outspoken bitcoin bull who has become a renegade in corporate America circles, is bringing his averages up. The company paid just over USD 45K for each bitcoin, on average. Saylor’s latest buying spree brings the tally of bitcoins held by the company to close to 109K. MicroStrategy has doled out USD 2.9 billion for the combined coins and in total has paid close to USD 27K for each bitcoin, on average.

MicroStrategy bought its first round of bitcoins in August 2020 when the price was hovering at around USD 11K. Saylor has ridden the wave higher and added to that position frequently ever since. In the interim, the MicroStrategy’s stock price has risen hand over fist in the last 12-month period, though like bitcoin it is off its peak.

Bull Market Activity

The bullish cryptocurrency market is a hotbed for transactions. In addition to MicroStrategy’s buying frenzy, Blockstream, a bitcoin infrastructure play, has reportedly just secured USD 210 million in a Series B fundraising round, the backers of which include Baillie Gifford and iFinex.

With a USD 3.2 billion valuation attached, Blockstream has unicorn status. Proceeds from the round will be directed toward Blockstream’s mining business, including its Blockstream Energy service, which is dedicated to renewable power generation projects.

Mainstream Adoption

Bitcoin continues to move closer to wide-scale adoption. One example of this is Substack’s recent decision to support bitcoin for payments via OpenNode.

Substack, a content platform with more than half-a-million paying subscribers, says independent publishers on its platform can now accept BTC as a method of payment and readers can pay with BTC. Substack is backed by VC firm Andreessen Horowitz.

A bullish bitcoin price goes a long way for cryptocurrency adoption, regardless of what the naysayers think. And while BTC has dipped below USD 50K today, it has not traveled far and could be well on its way to its next big milestone before year’s end.

Bitcoin Rejected at $40,000 Amid a Dwindling Bull Run

  • Bitcoin has seen meteoric growth in the past 24 hours as fueled by news from Amazon.
  • Despite the uptrend which stirred a growth of up to 15% in the latest run, the market bears rejected a push-up beyond the $40,000 resistance point.
  • Ethereum is also seeing a rejuvenation as it looks to breach the $2,500 price level.

Unique fundamentals unraveled in the past days have stirred a rejuvenation in the cryptocurrency industry. For a market that has been begging for a bullish awakening in months, the 8.65% in the global crypto market cap to $1.53 Trillion is perhaps enough to suggest a major rally may be brewing. This, however, is dependent on how Bitcoin and Ethereum can sustain their current growth trends.

Bitcoin Sees Impressive Price Growth and a Simultaneous Rejection

The premier cryptocurrency is currently changing hands at $38,282.8, up 9.84% according to data from CEX.IO the price feed. The news that Amazon is looking to hire a crypto expert to help chart its pursuit of accepting Bitcoin payments can be tipped as a major cause for this recent growth.

With the institutional backing which has seen the likes of Tesla, MicroStrategy, and recently SpaceX places a Bitcoin holding on their balance sheets set to be complemented with the Amazon push, market bulls went on an unbridled accumulation, pushing the price to a weekly and monthly high of $39,280.42.

The uptrend as seen on the BTC/USD 4h chart is attaining the peak at the current price level, suggesting a bear action that is repressing the price growth from crossing the $40,000. The RSI and MACD indicators are still showing positive signs of growth, and while we may see a little retracement, crossing the $40,000 resistance point remains the short-term target for investors.

Ethereum Maintaining a Steady Growth

At a current price of $2352.31 and a growth rate of 8.01% in the past 24 hours, Ethereum’s uptrend correlation with BTC was reiterated. However, unlike Bitcoin which has started seeing a gradual bear action, Ethereum bulls are pushing the coin to a new price point, such as has never be seen in the past month.

With prices trading above the short-term Moving Average, a sustained buyup can push Ethereum to the $2,500 to $3,000 price level in the coming weeks.

Why MicroStrategy Stock Is Down By 8% Today

MicroStrategy Stock Falls As Bitcoin Drops Towards $32,000

Shares of MicroStrategy found themselves under strong pressure amid strong sell-off in crypto markets. Bitcoin managed to settle below the support at $35,000 and made an attempt to settle below the next support level at $32,000 after China banned crypto mining in Sichuan province.

Today, the company announced that it purchased approximately 13,005 Bitcoins for $489 million at an average price of $37,617 per Bitcoin. MicroStrategy noted that it holds approximately 105,085 Bitcoins.

MicroStrategy is a business intelligence company, but it has emerged as one of bets on the growth of the crypto market after it started to buy Bitcoin. In this light, the dynamics of Bitcoin are a bigger catalyst for MicroStrategy compared to its main business.

What’s Next For MicroStrategy Stock?

MicroStrategy has recently completed an $500 million offering of 6.125% senior secured notes due 2028 and immediately used the proceeds to buy Bitcoin. Back in February, MicroStrategy completed a $1.05 billion offering of convertible senior notes due 2027 which was also used to buy Bitcoins.

At this point, MicroStrategy’s average purchase price is approximately $26,080 per Bitcoin, inclusive of fees and expenses, so the company has “paper profits” despite the major pullback in Bitcoin.

However, it should be noted that Bitcoin is trading not far from MicroStrategy’s average purchase price, and a move towards $26,000 may put significant pressure on MicroStrategy’s stock which remains very dependent on market sentiment.

At the current Bitcoin price of about $33,000, MicroStrategy’s Bitcoin are valued at approximately $3.47 billion, which is more than half of the company’s market capitalization.

Recent crackdown on miners in China has already led to increased volatility in crypto markets, and this volatility will likely remain intact in the upcoming trading sessions. MicroStrategy stock will be very sensitive to Bitcoin’s trading dynamics so traders should be prepared for fast moves.

For a look at all of today’s economic events, check out our economic calendar.

Stocks Rebound At The Start Of The Week

Traders Buy Stocks After Sell-Off

S&P 500 futures are gaining ground in premarket trading as traders rush to buy stocks after the recent sell-off.

The yield of 10-year Treasuries has recently made an attempt to settle below 1.36% but lost momentum and rebounded towards 1.44%. It looks that traders rushed to buy U.S. government bonds to increase exposure to safe-haven assets, but optimism prevailed, and yields moved higher.

Meanwhile, the U.S. dollar is losing ground against a broad basket of currencies after the recent rally. Weaker dollar provided some support to precious metals so gold and silver are moving higher at the start of the week.

Cryptocurrencies Dive Amid Crackdown In China

China continued to put pressure on crypto mining and banned mining in Sichuan province. This move triggered a major sell-off in crypto markets. Bitcoin declined towards the support at $32,000 while Ethereum fell below the $2,000 level. Dogecoin was the biggest loser among major cryptocurrencies. Currently, it is trying to settle below the support at $0.2250.

It looks that the recent flight to safety in global markets served as an important catalyst for the current downside move, and traders preferred “safer” alternatives to cryptocurrencies.

It remains to be seen whether the current sell-off in crypto markets will have any notable impact on the stock market, but crypto-related stocks like MicroStrategy are under significant pressure in premarket trading.

WTI Oil Moves Higher After Hardline Candidate Wins Iran Election

WTI oil made an attempt to settle back above the $72 level after judge Ebrahim Raisi, who is under U.S. sanctions, won presidential election in Iran.

Traders bet that Iran nuclear deal negotiations may get more challenging after Raisi’s victory.  However, traders may be using political developments in Iran as an excuse to buy oil at higher levels, while the strongest drivers behind the recent rally are the robust rebound of oil demand and the successful implementation of OPEC+ deal.

For a look at all of today’s economic events, check out our economic calendar.

Bitcoin Bump: Looming Regulation Fails to Spook BTC Investors

Bitcoin is on everyone’s minds these days, including regulators. The Bank for International Settlements (BIS) has introduced a proposal for a regulatory framework surrounding cryptocurrencies, including bitcoin, that looks a lot like the stablecoin model.

Cryptocurrency market leaders warn that excessive regulation will stifle innovation. The bitcoin price has advanced more than 7% even with the potential banking regulatory oversight looming to currently hover at USD 37,568. Despite today’s gains, bitcoin has shed more than one-third of its value since its April peak of USD 63,729.

BIS Proposal

The proposal, which was submitted by Basel Committee for Banking Supervision, a BIS committee, was created in response to heightened demand for bitcoin and altcoins. Regulators can no longer stick their heads in the sand about the market, and they want banks to take a conservative approach to handling digital assets.

Under the proposal, banks would be required to hold USD in reserves that is commensurate with the amount of bitcoin they possess. The regulator is looking to attach a 1,250% “high risk weight” to bitcoin in search of ” a conservative outcome for direct exposures of cryptoassets,” according to the proposal.

The bank regulator in chief listed the following risks associated with digital assets, saying it is looking to address these concerns:

  • consumer protection
  • money laundering
  • terrorist financing
  • carbon footprint (think Elon Musk)

Mainstream Media Coverage

Alexis Ohanian, co-founder of Reddit, discussed cryptocurrencies on CNBC today, calling it a “fascinating time.” On one hand,  El Salvador is looking to name bitcoin as legal tender, while the U.S. is moving toward cracking down on the space.

Ohanian believes the industry requires a “delicate balance” between embracing innovative technology and thwarting the risks. He warned that any “heavy hand” regulation would be detrimental to the United States as other countries take leaps forward.

Meanwhile, bitcoin bull and MicroStrategy chief Michael Saylor on June 9 was featured as a guest on Sean Hannity’s prime-time show on Fox News. Hannity, whose show that bears his name reaches millions of viewers, also tweeted a profile picture of himself on Twitter with laser eyes, a sign that he is drinking the crypto Kool-Aid.

MicroStrategy recently announced it is selling USD 500 million in bonds, the proceeds from which it will direct toward buying more bitcoin. The software maker already holds billions of dollars’ worth of BTC on its balance sheet. Saylor believes that bitcoin is headed for the moon.

 

Internet Computer: Fast-Rising Crypto Challenging Amazon and Microsoft

Internet Computer at the time this report was drafted, is currently the eighth-most valuable crypto with a market value of about $43 Billion.

Though recent price actions reveal the token has suffered some pullbacks some hours ago, investors are however betting high on the crypto because it enables anyone publish anything they want onto the internet with so much ease without going through cloud service providers like Microsoft and Amazon with the main objective of reducing operational costs.

The Internet Computer traded at $346.91 with a daily trading volume of $1.3 Billion. The Crypto founded by Dominic Williams is down 22% for the day.

The project’s token is already listed on a number of high-profile crypto exchanges that includes Binance, Coinbase, OKEx

The newly listed crypto asset is the first blockchain that operates on web speed with unrestricted capacity with a capability of scaling contract computation and data, processes and keeps data adequately, and most importantly facilitates powerful software frameworks to developers.

The Internet Computer’s functionality is similar to Ethereum, taking to account it depends on the use of smart contracts, or software programs in carrying out instructions, thereby competing with other related networks that include Binance Coin Polkadot fighting hard to steal Ethereum’s market share.

The company has been able to raise about $121 million from leading venture capital firms that include, SV Angel, Aspect Ventures, ZeroEx, Scalar Capital, Andreessen Horowitz, Polychain Capital, Electric Capital, Multicoin Capital, and several Ethereum fans.

Internet Computer officially went open-source on Monday a move that will permit developers in building the code and affirm that it derives from the same binary image that is referenced in upgrade proposals issued via the Network Nervous System

Bitcoin – The Surge, The Outlook, and The Beneficiaries

Following greater regulatory oversight and disclosure, Bitcoin has drawn the interest of private and public companies in addition to traders and investors.

A number of companies currently have sizeable Bitcoin holdings. Not only have they benefitted from the 2020 breakout but will see even more impressive gains should Bitcoin hit 6 figures this year.

The Beneficiaries

According to Bitcoin Treasuries, a large number of public trading companies have benefited from holding Bitcoin.

These include:

Microstrategy Inc. (“NADQ:MSTR”) – A U.S entity, with a reported holding of 70,470 BTC.

Galaxy Digital Holdings (TSE:GLXY”) – Canadian entity that purchased $134m worth of Bitcoin on 30th June 2020, equivalent of 16,651 BTC.

Square Inc. (“NADQ:SQ”) – U.S entity, with a reported holding of 4,709 BTC.

Hut 8 Mining Corp. (TSX:Hut-8”) – Canadian entity, with a reported holding of 2,953 BTC purchased in Q2, 2020.

Private Companies

MTGOX K.K – Japan private entity, with a reported 141,686 BTC holding.

Block one – U.S private entity, with a reported 140,000 BTC holding.

The Tezos Foundation – Swiss private entity, with a reported 24,808 BTC holding.

Stone Ridge Holdings Group – US entity, with a reported 10,889 BTC holding.

In addition, there are ETF like entities holding Bitcoin, where institutional and private investors have benefited from the Bitcoin surge.

The largest Bitcoin holders include:

Grayscale Bitcoin Trust – A U.S entity holding a reported 572,644 BTC

CoinShares / XBT Provider – An EU entity holding a reported 69,730 BTC.

Ruffer Investment Company – A UK entity holding a reported 45,000 BTC.

While some entities are established and directly involved in the crypto markets, other Bitcoin holders are not.

With Bitcoin price stability having returned after the slide to the 2020 low of $4,000, the upward trend has drawn sizeable institutional money.

In considering the more than 700% surge since the March low, balance sheets for these entities would have seen marked improvement.

Looking ahead, the number of entities is likely to increase. Existing Bitcoin holders are certainly well placed to reap greater rewards. Existing holders will also benefit from a significantly lower risk of being Bitcoin holders.

Looking Ahead

There have been plenty of Bitcoin price projections for 2021 flying around. When considering the upward surge from last year’s low of $4,000, $100,000 would be a conservative price forecast for 2021.

The largest reported public company Bitcoin holder, Microstrategy Inc., would see its Bitcoin holdings of 70,470 surge in value to $7.05bn. As of the end of 2020, its Bitcoin holding was valued at approximately $2.04bn.

Galaxy Holdings, the 2nd largest public company Bitcoin holder would see its $134m BTC investment hit the dizzying height of $1,665.1bn. With a current market cap of C$1,014bn, a Bitcoin visit to $100,000 would double the companies market cap. Not a bad return for shareholders…

Private companies have an even more impressive exposure to Bitcoin and have seen unprecedented rewards from their Bitcoin holdings.

Japan’s MTGOX K.K., would see its Bitcoin holdings rise from $1.1bn to $14.2bn should Bitcoin reach $100,000 in the year ahead.

Finally, looking at the Bitcoin ETFs, Grayscale Bitcoin Trust reportedly holds 572,644 BTC. A Bitcoin jump to $100,000 in 2021 would give Grayscale and its investors $57.3bn in Bitcoin investment income.

Investor Returns

For investors that have no direct exposure to Bitcoin, indirect benefits to Bitcoin’s newfound strength will boost returns.

Shareholders may also look to pressure companies to rejig balance sheets and have some exposure to Bitcoin. Short and long-term bonds and cash holdings may not cut it anymore.

There are fiduciary obligations, however. So, we may not see public and private companies purchase Bitcoin in the numbers seen to-date.

Few shareholders would complain about the likely dividends that would result from a Bitcoin surge to $100,000.

Downside risks are ever-present, however, and the more risk prudent investor will be mindful of the impact of any Bitcoin meltdown.

The good news, for the companies discussed above, however, is that Bitcoin would need to take quite a hit to give them a Bitcoin loss.