There is evidence all over the place that institutional traders are beginning to have more of a hand in bitcoin and cryptocurrency trades. Grayscale reported more than $1 billion in bitcoin transactions during its second quarter, and another company called MicroStrategy announced that it would purchase more than $250 million in bitcoin to add to its financial reserves.
MicroStrategy Is Looking To Garner More BTC
This marks one of the first times where a massive company stated that it would be entering the bitcoin spectrum in such a huge way. $250 million is not a small number, and the fact that the company would be purchasing so much means that the executives behind the firm clearly see bitcoin and crypto as money of the future. They are not focusing on cash or even gold for that matter. They are specifically turning to bitcoin to ensure they are financially stable in the coming years.
But it looks like that love and confidence in bitcoin has grown even further. The company is now issuing a statement saying that it is looking into more bitcoin options and that it is considering adding even more bitcoin to its already massive stash. Executives met on September 11 ? Patriot Day ? and issued a new filing, which was recorded with the Treasury Reserve Policy.
The filing states:
Under the new policy, treasury reserve assets will consist of (I) cash, cash equivalents and short-term investments (?cash assets?) held by the company that exceed working capital needs and (II) bitcoin held by the company, with bitcoin serving as the primary treasury reserve asset on an ongoing basis, subject to market conditions and anticipated needs of the business for cash assets, including future potential share repurchase activity. As a result of this new policy, the company?s holdings of bitcoin may increase beyond the $250 million investment that the company disclosed on August 11, 2020.
This goes to show that bitcoin?s reputation is exploding as of late. Many see it as the equivalent of gold, or something that could potentially hedge one?s wealth against inflation and other harsh economic conditions. This trend arguably began in March, when the coronavirus first struck our global markets. Everything began traversing through bearish territory. Even bitcoin, which is now trading at its highest mark in roughly one year, fell into the high $3,000 range for a brief period.
Many See Bitcoin Through a Much Clearer Eye
But it wasn?t long until people began to view bitcoin through a much stronger and clearer lens. They saw bitcoin as something that could potentially protect their wealth. Something more trustworthy than cash or fiat currencies, which at the time of writing, have been suffering greatly as the economy tries desperately to pull itself back together.
The fact that so many companies ? some as big as MicroStrategy ? are looking to add bitcoin to their portfolios suggests the currency?s strength and resilience beyond any measure.