Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $1,09 trillion. Bitcoin is up by over 2% to reach around $27,200. Ethereum increased by nearly 6% to close to $1,700. XRP gained almost 2% in value during a highly volatile week. Almost all altcoins are trading in the green, with virtually no exceptions. The DeFi sector maintains the total value of protocols (TVL)…
According to a tweet, Microstrategy Inc. has earned $100 million from its Bitcoin investment in the last two months. This is $22 million higher than the amount ($78 million) the company has earned from its business operations in the last 3.5 years. The Nasdaq-listed company currently owns 38,250 Bitcoins worth over $526 million as the BTC price rallies higher than $13.5k.
Bitcoin – a new capital investment strategy
As per Michael Saylor, Chairman & CEO of Microstrategy, the company invested a total sum of $425 million for acquiring 38,250 inclusive of fees and expenses. The company, which describes itself as “the largest independent publicly-traded business intelligence company,” first announced its intentions of buying Bitcoins earlier this in July. A few weeks later, the company announced buying its first set of 21,454 Bitcoins. It invested a whooping sum of $250 million in purchasing these Bitcoins.
Later on, in September, the company completed its acquisition of additional 16,769 Bitcoins. Thus, making the total amount of 38,250 Bitcoins in its portfolio. As per Bitcoin Treasuries, Microstrategy currently owns 0.182% of Bitcoins’ total supply (21 million).
Institutional investment in Bitcoin
Well, Microstrategy is not the only one. We’ve seen an uptick of institutional investment in cryptocurrencies lately. Around 15 publicly traded companies and three private companies have already invested a huge sum in Bitcoins. Recently, Rothschild Corp also bought GBTC shares that derive their value solely from Bitcoin’s price. We’vee been also seeing a surge of ETFs pegged on cryptocurrencies. To name a few – Grayscale Bitcoin Trust, 21Shares AG, 3iQ The Bitcoin Fund, ETC Group Bitcoin ETP, CoinShares, etc.
The cryptocurrency enthusiasts and the Bitcoin community, on the other hand, sees institutional investments in cryptocurrency to be very bullish. As of now, the total institutional investment in Bitcoin has already surpassed the $10 Billion mark, and it keeps rising. Around 3.74% of Bitcoins’ total supply currently lies in the portfolio of these early institutional adopters of Bitcoin.