A couple of years ago, large companies considered it a good form to throw stones at the crypto industry, with Bitcoin and other popular cryptocurrencies coming under heavy criticism. Today, many market participants have been forced to radically alter their view of this new financial instrument and even join the crypto community.
What’s the reason for these big players’ change in attitude, and what organizations can be called major Bitcoin investors? Learn from our material!
Bitcoin Has Become Attractive for Business
Cryptocurrency has been around for just over 12 years. Of course, that’s nothing compared to traditional money, but despite their youth, cryptocurrencies are evolving much faster than classical financial instruments due to their technical features.
This rapid development has helped Bitcoin (BTC), the most capitalized of the digital assets, to pass through a number of important stages in just a few years. We suggest that you look at these in more detail.
№1 – Launch and Dissemination Among Crypto Enthusiasts
The first block in the cryptocurrency network was generated on January 3, 2009. A couple of days later, on January 12, the creator of the
Comparison of global cryptocurrency market capitalization with that of large companies, as of April 7, 2021.
Source: Twitter Coin98 Analytics
Thirdly, many market participants, including managers engaged in capital management, have become convinced of the stability of Bitcoin’s correction mechanisms. The fact is that each halving reduces the mining speed of already rare BTC, thereby creating a shortage of the asset on the market. The history of this cryptocurrency has shown that when this mechanism is employed, the price of Bitcoin rises. It is largely due to this that many companies have decided to invest in BTC.
In short, this is how Bitcoin went from being an unknown digital asset with a dubious reputation to a financial instrument with many large investors.
Big Bitcoin Investors – Who Are They?
There are several companies in the market whose investments in BTC have had a significant impact on the cryptocurrency. Among them is an analytical software provider called MicroStrategy.
In August of 2020, the organization acquired 21,454 BTC, which was worth about $250 million at the time of the transaction. MicroStrategy became the first public company to invest part of its capital in Bitcoin. Subsequently, the organization has repeatedly announced increases in its investment in BTC.
One of MicroStrategy’s latest purchases fell on May 18, 2021, when Bitcoin’s price fell to $30,000 amid increasing regulatory pressure from China. According to the company’s CEO, Mike Saylor, MicroStrategy has accumulated a total of 92,079 BTC, taking into account the new purchase.
To see the impact of MicroStrategy’s decision to invest in Bitcoin, look carefully at this chart showing the history of the company’s share price. The blue vertical line marks the day it made its first BTC purchase:
MicroStrategy Stock Chart. Source: TradingView
Another company that has had a significant impact on Bitcoin’s position is Tesla. In early February of 2021, the electric car manufacturer reported to the US Securities and Exchange Commission (SEC) that it had made a purchase of cryptocurrency for $1.5 billion. The market’s reaction to Tesla’s decision can be seen on this BTC chart:
Bitcoin Chart. The blue vertical line marks the day of publication of Tesla’s report, which contains information on the company’s $1.5-billion purchase of BTC. The pink oval shows Bitcoin’s movement following the news release. (Source: TradingView)
Interesting fact! At the beginning of March 2021, analysts at Piplsay released a study that showed that about 40% of American investors are guided by Tesla founder Elon Musk’s Tweets when making investment decisions.
Given the faith that many market participants put in the developer, it’s not surprising that the cryptocurrency’s exchange rate soared after the announcement of the BTC purchase by his company’s representatives.
The decisions of MicroStrategy and Tesla to invest in the cryptocurrency have prompted many other organizations to quickly adjust their own investment strategies. Here are some examples:
- In early December 2020, the oldest insurance company in the United States, MassMutual, bought $100 million worth of BTC.
- In early March 2021, Altshuler Shaham, a large Israeli pension fund, invested $100 million in Bitcoin. Information about this appeared in the media.
- In early April 2021, Meitu, a Chinese technology developer, increased its investment in cryptocurrency to $100 million. In total, the company had 940 BTC at its disposal. Meitu’s $100-million crypto portfolio included 31,000 Ethereum, which is the second-largest cryptocurrency by capitalization.
- At the end of April 2021, Nexon, a major Japanese video game developer, bought BTC worth $100 million.
- In the first days of May 2021, MercadoLibre, Latin America’s e-commerce giant, spent $7.8 million on BTC.
It’s very likely that members of the crypto community will often hear about cryptocurrency purchases made by large companies in the future.
Is it worth taking an example from Tesla and Co?
The fact that large companies have begun to invest in Bitcoin can be seen as a manifestation of trust in the new financial instrument, which makes it more attractive in the eyes of market participants. This change in the position of cryptocurrencies can be used to make a profit.
The last halving of Bitcoin took place in May of 2020. Many members of the crypto community believe that this digital asset will be able to break through the $100,000 mark within the current growth cycle. This possibility is confirmed by the projections of a BTC forecasting model developed by the popular analyst PlanB projects, which takes into account the speed of bitcoin mining, the influence of halvings, and the patterns of Bitcoin movement in previous periods.
PlanB is confident that the drop in BTC’s value seen at the end of May 2021 represents a great opportunity to buy Bitcoin at an attractive price.
#bitcoin oscilates in the dark blue band around S2F model value. Buying opportunities like today are rare (Q1 2019 when I wrote the S2F article, March 2020 due to covid, and now). Life is all about choices. https://t.co/rlb5dsIFSg pic.twitter.com/rQpTvzR3eW
— PlanB (@100trillionUSD) May 22, 2021
You can find many options for buying cryptocurrency with rubles on the web. Unfortunately, not all of them are worthy of attention. On many platforms, there’s a risk of encountering pitfalls: large commissions and inconvenient conditions included in the fine print.
At the same time, there are also many decent options on the market. For example, the fully Russified Alfacash platform allows you to profitably buy Bitcoin and other cryptocurrencies with rubles.
Unlike exchanges, you do not need to verify your account to work on the site. Registration only takes a few seconds, and you can start buying cryptocurrency immediately afterwards
Interesting! On Alfacash, among other things, you can buy digital assets with credit cards.
Alfacash also includes functions to exchange and sell digital assets, as well as other services that are necessary in order to comfortably work with these new financial instruments.
Image by Sharon McCutcheon from Pixabay
Source: https://www.newsbtc.com/sponsored/big-bitcoin-investors-who-they-are-in-teslas-footsteps/
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