MicroStrategy Shares Soar as Bitcoin Reaches Highest Level Since July 2019

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Wed, 10/21/2020 - 15:59
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Alex Dovbnya
MicroStrategy shares soar six percent in tandem with Bitcoin
MicroStrategy Shares Soar as Bitcoin Reaches Highest Level Since July 2019
Cover image via stock.adobe.com
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The shares of business intelligence firm MicroStrategy have spiked nearly eight percent during trading hours.

The company's stock is now up 47.54 percent since it went all in on Bitcoin three months ago.

MSTR
Image by tradingview.com

No need for a Bitcoin ETF

Blockstream CEO Adam Back suggests that investors do not even need an exchange-traded fund (ETF) for Bitcoin anymore, given that they can get direct exposure to the leading cryptocurrency via MicroStrategy.

The Nasdaq-listed company boldly moved into crypto by adopting Bitcoin as its primary reserve asset in August. It now holds 38,250 BTC purchased at an average cost of $11,111, which constitutes 90 percent of its balance sheet.

In an interview, MicroStrategy's Michael Saylor said that he was looking for an asset that he could hold for at least a century.
 
Payment giant Square soon followed suit with its own $50 mln investment.

Related Michael Saylor Says He Doesn't Respect Bitcoin Traders
Related
Michael Saylor Says He Doesn't Respect Bitcoin Traders

MicroStrategy's timely Bitcoin bet

Saylor's Bitcoin bet is fairing very well thus far. He is currently up nearly 14 percent as Bitcoin is trading at $12,660. In the meantime, the dollar index (DXY) is down 1.21 percent since MicroStrategy disposed of its "melting ice cube" of cash.

As reported by U.Today, Bitcoin rocketed to a new 2020 high earlier today on the news that PayPal will soon start supporting the former.


Bitcoin surged to $12,865 earlier today, its highest level since July 2019, before paring some of its gains.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.