Bullish for Bitcoin? These financial giants buy $75 million in MicroStrategy shares

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Image by: Giovanni Calia – Unsplash

Software company MicroStrategy is attracting the attention of major players in the financial world due to its Bitcoin bet. Almost three years ago, this company became one of the first publicly traded entities in the United States to incorporate BTC into its financial strategy. Since then, he has continuously added BTC to his treasury.

Looking for a way to gain exposure to Bitcoin

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

Therefore, buying MicroStrategy stock is a proxy used by companies in the United States to gain exposure to Bitcoin. In this country, large entities have limited options to bet on the long-term appreciation of BTC.

The U.S. Securities and Exchange Commission (SEC) has refused to approve a spot Bitcoin Exchange Traded Fund (ETF), forcing companies to indirectly expose themselves. As shown in the graph below, several companies use this strategy.

These companies include financial institution Bank of America, which purchased more than 226,506 MicroStrategy shares, and fund and asset managers BlackRock and Fidelity, which purchased 10,800 and 96,800 shares, respectively, in the first quarter of 2023. only.

Bank of America, BlackRock, Fidelity are among the biggest holders of MicroStrategys. Source: SimplyBitcoinTV via Twitter

Capital Research and The Vanguard Group are two of MicroStrategys 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 by MicroStrategy had an impact on its price.

The company is tied to the Bitcoin price. Thus, it has been trending lower over the past year but continues to move well above its 2020 low of around $110 following its Bitcoin cash strategy. The correlation is poised to benefit the software company and its investors if BTC can continue to climb from its yearly lows.

MicroStrategys (MSTR) prices are trending higher following its BTC cash strategy on the daily chart. Source: MSTRUSD trading view

In 2020, MicroStrategy started a trend that gained strength even as BTC prices were on the decline. The number of businesses holding cryptocurrency as part of their cash flow 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 if the event can push more businesses to embrace cryptocurrency.

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