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MicroStrategy Inc. has seen its stock soar to a 2-year high, fueled by news that it had massively increased its holdings of Bitcoin (BTC). The company disclosed an investment of $250 million in the same cryptocurrency in August 2020, which sparked a buying spree in other cryptocurrency stocks as well.
Since then, the highest-priced publicly-traded business intelligence firm has continued to increase its Bitcoin portfolio, and the stock has moved accordingly. As of 20 August, MicroStrategy had purchased 71,079 Bitcoin, at an average cost of around $15,964 per coin. This number was updated to 92,079 Bitcoin, or nearly $1.4 billion in various investments, when MicroStrategy announced its preliminary fiscal third-quarter report last week.
This news fueled the company’s stock, as well as other cryptocurrency stocks, while pushing the total market capitalization of Bitcoin holdings held by publicly traded companies higher. Other companies, such as Square Inc. and Meitu, have followed suit and purchased various amounts of Bitcoin, driving the traditional stock market higher.
The addition of Bitcoin into the traditional stock market has provided investors with an opportunity for diversification, one that has clearly been embraced by MicroStrategy and other companies willing to take the risk. The resulting bullish sentiment may continue to favor MicroStrategy, as long as the cryptocurrency market remains bullish and the company continues to make large-scale investments in Bitcoin.