What are your choices if you’re an institutional investor interested in Bitcoin but cannot buy it directly because of restrictions or are afraid to do so for other reasons? Looking at recent occurrences, growing your exposure to MicroStrategy would be a substitute way to raise your exposure to Bitcoin without holding any of it.
How MicroStrategy and Michael Saylor led the way in embracing BTC as a treasury reserve asset?
Michael Saylor, MicroStrategy’s former CEO and co-founder, showed he took cryptocurrencies seriously in August 2020 when the business acquired its initial $250 million bitcoin. Saylor believed that Bitcoin was the most effective and efficient way to store capital and a critically crucial financial invention.
And this wasn’t to be a half-measure either; Saylor then acted firmly to make Bitcoin MicroStrategy’s main treasury reserve asset. As a result, the business has bought 140,000 BTC since 2020 for an average price of $29,803 per coin.
Furthermore, Saylor has emerged as one of the most well-known public defenders of Bitcoin, its value, and the belief that it will eventually surpass all other assets in terms of strength.
In this role, Michael Saylor has given innumerable interviews on channels ranging from big outlets like CNBC and Fox News to crypto-specific niche podcasts. He also altered his position at MicroStrategy, rising to Executive Chairman in August 2022, saying at the time that he would be able to concentrate more on our bitcoin acquisition strategy and advocacy initiatives.
At the beginning of this month, MicroStrategy said that it had added 1,045 coins to its collection, paying an average price of $28,016 per coin.
Institutions increase MicroStrategy exposure
Any gains in institutional ownership of MicroStrategy shares are notable as potential indicators of broader interest in Bitcoin. MicroStrategy is now well recognized for its bitcoin holdings, and Michael Saylor has taken on a position including bitcoin advocacy.
The most significant purchases came from Bank of America, which increased its holdings by almost $60 million, followed by Capital Group and Fidelity Investments. Year-to-date reports show that institutional ownership of MicroStrategy shares rose 121% in Q1 of this year, and that figure includes some sudden increases in exposure by significant entities.
After Capital, Vanguard, and BlackRock, Bank of America currently holds the fourth-largest stake in MicroStrategy, with Vanguard and BlackRock growing their stakes.
Conclusion
Investors can now indirectly access Bitcoin through MicroStrategy’s stock since it has emerged as an institutional Bitcoin proxy. Under the direction of CEO Michael Saylor, MicroStrategy has acquired considerable amounts of Bitcoin and has become closely associated with it. Institutional investors have raised their MicroStrategy shares by increasing interest in Bitcoin.