MicroStrategy, one of the most innovative technology companies in the world, has recently announced its ambition to become a “Bitcoin Bank“.
This ambitious plan was revealed after the company purchased the cryptocurrency at a price above 100,000 dollars for the first time in its history.
In the meantime, BTC reaches a new all-time high overnight above 106,500 dollars.
Let’s see all the details below.
MicroStrategy revolutionizes the crypto world: it wants to become the first “Bitcoin Bank” in the world
MicroStrategy began purchasing Bitcoin in September 2020, when the price of the cryptocurrency was still relatively low.
Since then, the company has continued to increase its reserves of Bitcoin, using both debt and equity to maximize its returns.
Now MicroStrategy raises the bar and aims to create a solid financial institution for the crypto market.
In a recent interview, the CEO of the business intelligence company revealed his plan, which is to become the first “Bitcoin Bank” in the world.
This means that the company intends to create financial instruments based on Bitcoin, such as convertible bonds, common shares, and debt instruments.
Saylor explained that MicroStrategy plans to invest the funds raised at interest rates higher than traditional ones, with an estimated average annual return of 29%.
With its Bitcoin reserves and its aggressive purchasing strategy, the company is well positioned to achieve the set goal.
Currently, MicroStrategy boasts a stash of 423,650 BTC, purchased at an average cost price of 60,389 dollars, making it the largest holder of Bitcoin among publicly traded companies in the world.
Given the price action of the cryptocurrency, the investment is now in profit by 73.75% for a PNL of 18.86 billion dollars.
The news of MicroStrategy’s plan to become a Bitcoin Bank comes after Saylor suggested a new purchase of the crypto above 100,000 dollars.
Yesterday the digital entrepreneur posted a tweet in which he referred to a missed update of the tool “Saylor Tracker” hinting at the new buy.
Is https://t.co/Bx3917zMqi missing a green dot? pic.twitter.com/B3Zzd6M1uV
— Michael Saylor
(@saylor) December 15, 2024
MicroStrategy breaks new records: the MSTR stock enters the NASDAQ100
The ambition to become a Bitcoin Bank follows a significant milestone achieved by MicroStrategy, which a few days ago officially entered the Nasdaq 100.
The “BTC yield” strategy, which consists of an aggressive accumulation of the resource, has allowed the company to significantly increase the price of its own stock.
In particular, MSTR has recently surpassed the 400-dollar threshold, enough to grant it a place within the ranking of the most quoted assets on the Nasdaq.
As analyst Eric Balchunas observes, on November 29 a snapshot of the stock market was taken, in preparation for the annual rebalancing of the index.
MicroStrategy has become the 40th listed company by market capitalization, with a probable index weighting of 0.47%.
The record was announced directly by Michael Saylor on December 13. The MSTR stock will become part of the index on December 23.
$MSTR added to $QQQ!!! CONGRATS @Saylor & $MSTR HODLERS! https://t.co/hxcfELRa7w
— Jeff Walton (@PunterJeff) December 14, 2024
According to Bloomberg, this news could favor a continuation of the growth phase of the stock. The ETFs that follow the Nasdaq 100 are indeed preparing to purchase about 2.1 billion dollars in MicroStrategy shares, which is 20% of the company’s daily trading volumes.
All this also helps the stock to be more attractive in the eyes of investors and institutions. Inclusion in the Nasdaq 100 offers a unique capital opportunity for the company, which can leverage this visibility to further expand its operations.
With the inclusion in the Nasdaq 100, MicroStrategy strengthens its position as a digital leader, increasing the chances of becoming a Bitcoin Bank.
The company now sees MSTR increase by 6% in pre-market to 630 dollars, awaiting the next stimulus that could facilitate a further bull rally.
Since the beginning of the year, the bull have increased the price of the stock resource by 500%, reflecting the success of the strategy focused on cryptocurrency.
Bitcoin registers a new all-time high: the unstoppable rally of the cryptocurrency
Amid the praise for MicroStrategy, which aspires to become a Bitcoin Bank, the cryptocurrency gains momentum and records a new all-time high.
After marking a small retracement around 93,000 dollars in the previous days, the bull return to draw the chart of green candles.
The price of the orange coin has surpassed for the first time in its history 106,500 dollars, bringing its market capitalization to 2.1 trillion dollars.
In the last 30 days, prices have increased by 14%, while since the beginning of the year, the growth is more remarkable and stands at almost 150%.
At the time of writing the article, Bitcoin is priced at approximately 104,600 dollars, while it awaits a new bull impulse. The asset is well above the EMA 50 on all major time frames, with an RSI indicating an overbought phase.
In the next few hours, it is possible that some take profit will be executed, but the main outlook remains fundamentally bullish.
Obviously, MicroStrategy plays a key role in this bull market, acting as a proxy for the explosive price action of the cryptocurrency.
The more the company raises capital to accumulate Bitcoin, the more the cryptocurrency becomes appealing in the eyes of investors.
