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This CEO is betting big on Bitcoin. But he is not alone
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The price of Bitcoin more than doubled in 2021.
But according to Michael Saylor, CEO of MicroStrategy, there are still plenty of benefits to come.
Our point of view is [Bitcoin will] be volatile because it is connected to the whole crypto market and its new, but it is increasing forever, Saylor told CNBC earlier this month.
Saylor continues to put his business money where his mouth is. In the third quarter, MicroStrategy bought 9,000 bitcoins, bringing its total number of bitcoins to 114,042. At the current price, this reserve is worth approximately $ 7.4 billion.
Since the start of the year, Bitcoin is up 128% while MicroStrategy shares have jumped 103%.
Of course, MicroStrategy isn’t the only company with bitcoin on its balance sheet.
Here’s a look at three other companies that have taken on cryptocurrency as well.
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Contents of the Tesla article (TSLA)
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This is the most obvious. When the electric vehicle giant revealed that it had stored over $ 1.5 billion worth of Bitcoin in February, the news caused the cryptocurrency to skyrocket.
In July, CEO Elon Musk tweeted that the company had nearly 42,000 bitcoins.
It’s certainly a big stake, but nothing too big for Tesla’s size.
Thanks to a more than 10-fold increase in its share price since the start of 2020, Tesla’s market cap has passed the $ 1,000 billion mark.
As you would expect from this kind of rally, Tesla’s business is growing rapidly.
In the third quarter, revenue was $ 13.76 billion, a 57% year-over-year increase. Meanwhile, net profit reached $ 1.62 billion, up 389% from the previous year.
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Going forward, the electric vehicle maker expects to achieve an average annual growth of 50% in vehicle deliveries over a period of several years.
Granted, Tesla is currently trading at over $ 1,100 per share. But you can get a part of the business by using a free stock trading app like Wealthsimple that lets you buy fractional stocks with as much money as you are willing to spend.
Square (SQ)
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Square co-founder and CEO Jack Dorsey has long been a supporter of Bitcoin.
In fact, his hopes for cryptocurrency extend beyond his financial capabilities.
My hope is that this creates world peace or helps create world peace, Dorsey said during a B World webinar in July.
Square has 8,027 bitcoins, worth around $ 531 million today.
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The digital payments technologist’s shares have moved sideways for most of 2021, but the company itself has improved a lot.
In the third quarter, gross margin increased 43% year-over-year to $ 1.13 billion, while revenue increased 27% to $ 3.84 billion.
During the quarter, Square also announced two new Bitcoin initiatives: a consumer Bitcoin hardware wallet and a Bitcoin mining system.
Both aim to help Bitcoin reach mainstream audiences while strengthening the network and ecosystem, Dorsey said on the conference call with analysts.
Marathon Digital Holdings (MARA)
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With a market capitalization of around $ 7.5 billion, Marathon Digital is significantly smaller than Square and Tesla. But Bitcoin investors shouldn’t ignore it.
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Marathon is a cryptocurrency miner. Since the start of the year, its mining fleet has produced around 2,516 self-mined bitcoins.
While some Bitcoin miners might be tempted to sell their coins in the middle of this crypto rally, Marathon is simply reserving an act known as holding on to life, or HODL, for crypto enthusiasts.
In fact, the company hasn’t sold any bitcoin since October 2020. It even bought 4,812.66 bitcoins in January 2021 at an average price of $ 31,168 per coin.
Due to continued accumulation, Marathon now owns around 7,453 bitcoins, a stake worth over $ 490 million.
Unsurprisingly, the stock has performed extremely well amid the current crypto boom. Since the start of the year, Marathon shares have increased 591%.
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Content of the article Bitcoin or Banksy?
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You can still buy Bitcoin directly.
Today, many exchanges charge up to 4% commission fees just for buying and selling cryptos. But some investing apps like Weathsimple charge a lot less and let you start with as little as $ 1.
Of course, if you want to invest in something that has little correlation to the ups and downs of the crypto market, consider a real but overlooked asset like fine art.
Contemporary art has already surpassed the S&P 500 by 174% in the past 25 years, according to the Citi Global Art Market table.
Investing in art by Banksy and Andy Warhol was once an option only for the ultra-rich.
But with a new investment platform, you can also invest in iconic works of art, just like Jeff Bezos and Bill Gates do.
This article was created by Wise Publishing. Wise is dedicated to providing information that helps readers navigate the complex landscape of personal finance. Wise only associates with brands that he trusts and that he believes can be of use to the reader. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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