Bullish on Bitcoin? These financial giants are buying $75 million worth of MicroStrategy stock

Image by: Giovanni Calia – Unsplash

Software company MicroStrategy is attracting attention from big players in the financial world due to its Bitcoin bet. Almost three years ago, this company became one of the first public companies in the US to incorporate BTC into its financial strategy. Since then, it has continued to add BTC to its treasury.

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Data from Bitcoin Treasuries shows that MicroStrategy holds the largest BTC supply of any publicly traded company at $3.9 billion, or 140,000 BTC. This equates to 0.66% of the total Bitcoin supply.

As a result, buying MicroStrategy stock is a proxy used by companies in the US to gain exposure to Bitcoin. In this country, big companies have limited opportunities to bet on the long-term appreciation of BTC.

The US Securities and Exchange Commission (SEC) has refused to approve a spot bitcoin exchange-traded fund (ETF), forcing companies to get involved indirectly. As shown in the chart below, several companies are employing this strategy.

Those companies include financial institution Bank of America, which bought over 226,506 MicroStrategy shares, and fund and asset managers BlackRock and Fidelity, which bought 10,800 and 96,800 shares, respectively, in the first quarter of 2023 alone.

Bank of America, BlackRock and Fidelity are among the largest owners of MicroStrategy. Source: SimplyBitcoinTV via Twitter

Capital Research and The Vanguard Group are two of MicroStrategy’s largest shareholders and are still bullish on the company with 154,100 and 28,000 shares purchased over the same period. The capital injection received from MicroStrategy has had an impact on the price.

The company is tied to the price of Bitcoin. Hence, it has seen a downtrend over the past year but continues to trend well above its 2020 low of around $110 according to its Bitcoin Treasury strategy. The correlation should benefit the software company and its investors if BTC can continue to climb from its yearly lows.

MicroStrategy (MSTR) price is trending higher on the daily chart following its BTC Treasury strategy. Source: MSTRUSD trade view

In 2020, MicroStrategy started a trend that has actually intensified as the price of BTC turns down. The number of companies holding cryptocurrency as part of their treasury has grown exponentially since 2018.

Now, for the first time in months, the company has announced new BTC purchases and a new edition of its Bitcoin and Lightning for Corporations events. It remains to be seen whether the event can attract more companies to adopt the cryptocurrency.

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