{"id":467337,"date":"2021-07-12T22:04:03","date_gmt":"2021-07-12T22:04:03","guid":{"rendered":"https:\/\/wncen.com\/?p=467337"},"modified":"2024-06-11T13:57:01","modified_gmt":"2024-06-11T13:57:01","slug":"why-capital-internationals-600m-investment-in-microstrategy-matters-to-bitcoin","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/why-capital-internationals-600m-investment-in-microstrategy-matters-to-bitcoin\/","title":{"rendered":"Why Capital International’s $600M Investment In MicroStrategy Matters To Bitcoin"},"content":{"rendered":"
Capital International’s strategic investment in one of the most talked-about companies of the year shouldn\u2019t raise any eyebrows. However, when said company is pursuing a never-before-seen strategy using a highly experimental digital asset, the world watches. It\u2019s safe to say that Capital International believes in MicroStrategy as a company and in its CEO Michael Saylor. However, it\u2019s also obvious that they\u2019re buying exposure to Bitcoin.\u00a0<\/span><\/p>\n Related Reading | Indian Investments In Crypto Grow Rapidly As $40 Billion Milestone Is Reached<\/a><\/strong><\/em><\/p>\n Let\u2019s quote Cointelegraph<\/a> for an overview:\u00a0<\/span><\/p>\n In MicroStrategy\u2019s filings to the U.S. Securities and Exchange Commission, or SEC, for the second quarter of 2021, the firm <\/span>disclosed<\/span><\/a> Capital International Investors has purchased 953,242 shares of its stock. Following the release of the SEC filing, MicroStrategy\u2019s stock price rose by more than 1.5% to reach $628.44 at the time of publication<\/span><\/p><\/blockquote>\n That initial excitement didn\u2019t last. Three days later, the stock trades at $589.52. And Bitcoin didn\u2019t even react, \u201c<\/span>Despite the news of a major investment into a company with massive crypto holdings, the price of BTC was seemingly unaffected. Bitcoin has risen 2% in the last 24 hours to reach $33,438<\/span><\/i>.\u201d However, Capital International should be unfazed. Day-to-day movements are practically irrelevant when you\u2019re investing in the future.<\/span><\/p>\n NewsBTC passes the mic to James Wo, CEO of the Digital Finance Group:<\/span><\/p>\n I believe that funds with a long investment horizon are de facto betting on Bitcoin\u2019s growth in the long term. Many of them are either already exposed to bitcoin or very close to entering the market one way or another.\u00a0<\/span><\/p><\/blockquote>\n <\/p>\n Actually, Michael Saylor himself answered this question while explaining <\/span>his company\u2019s Bitcoin strategy<\/span><\/a>:<\/span><\/p>\n According to Saylor, his company offers two advantages. One, Microstrategy has the ability to sweep its software cash flow into Bitcoin. Two, they have the ability to raise debt financing. They can borrow a billion Dollars with zero percent interest. Your ETF will not be able to do that.\u00a0<\/span><\/p><\/blockquote>\n And yes, he compared MicroStrategy stocks to an ETF because that\u2019s his competition, not Bitcoin. Some investors want exposition to Bitcoin through a regulated market. And, despite the high demand and fillings by several high-profile financial institutions, the <\/span>US SEC hasn\u2019t approved<\/span><\/a> a Bitcoin ETF.\u00a0<\/span><\/p>\n So, MicroStrategy is Capital International’s best option at the moment. Plus, they might be fans of Michael Saylor\u2019s unapologetic approach to Bitcoin accumulation.<\/span><\/p>\n Institutional interest is there. And every day there are more options for that money to reach its destination. Not everyone is going to do everything they can to acquire more Bitcoin like MicroStrategy. All companies aren\u2019t able to start developing Bitcoin tools and services like Square. Not everyone will develop ramps to accept Bitcoin for their product and then suspend the program for bogus reasons like Tesla.\u00a0<\/span><\/p>\n Related Reading | Binance Burns Record $600 Million BNB In Its 15th Quarter <\/a><\/strong><\/em><\/p>\n Different options for different folks. However, there are risks involved. NewsBTC <\/span>quotes Second Foundation Partners\u2019 Ben Hunt<\/span><\/a>:\u00a0<\/span><\/p>\n He describes the strategy as a way to accommodate and swallow Bitcoin, which is what they\u2019ve done with every other financial innovation. Adding it\u2019s preferable to stifle its censorship resistance and turn it into another Wall Street gaming table. The upshot to this is a future where people are encouraged to buy Bitcoin.<\/span><\/p>\n \u201cBecause the artistic Bitcoin identity I admire and value has been subverted by the neutering machine of Wall Street and the regulatory panopticon of the US Treasury Dept.<\/span><\/p><\/blockquote>\n Did that already happen? Or can an open network like Bitcoin overcome this hurdle with ease? Members of the community do say that \u201cBitcoin doesn\u2019t care\u201d about mundane actions. In any case, institutional investment interest is there, and the chips will fall where they may. To close this, James Wo continues with the idea that funds are \u201c<\/span>betting on Bitcoin\u2019s growth in the long term<\/span><\/i>\u201d:<\/span><\/p>\n A certain amount of this upward momentum has already been factored into the price we have at the moment. However, scarcity is an essential factor that is yet to show the real impact in the long term.<\/span><\/p><\/blockquote>\n The game is just beginning, but the cards are already on the table. Things are looking good for Capital International and Bitcoin in the long term. Plus, the decentralized network has scarcity as an ace up its sleeve. <\/span><\/p>\n Capital International’s strategic investment in one of the most talked-about companies of the year shouldn\u2019t raise any eyebrows. However, when said company is pursuing a never-before-seen strategy using a highly experimental digital asset, the world watches. It\u2019s safe to say that Capital International believes in MicroStrategy as a company and in its CEO Michael Saylor. However, it\u2019s also obvious that they\u2019re buying exposure to Bitcoin.\u00a0 Related Reading | Indian Investments In Crypto Grow Rapidly As $40 Billion Milestone Is Reached Let\u2019s quote Cointelegraph for an overview:\u00a0 In MicroStrategy\u2019s filings to the U.S. Securities and Exchange Commission, or SEC, for the second quarter of 2021, the firm disclosed Capital International Investors has purchased 953,242 shares of its stock. Following the release of the SEC filing, MicroStrategy\u2019s stock price rose by more than 1.5% to reach $628.44 at the time of publication That initial excitement didn\u2019t last. Three days later, the stock trades at $589.52. And Bitcoin didn\u2019t even react, \u201cDespite the news of a major investment into a company with massive crypto holdings, the price of BTC was seemingly unaffected. Bitcoin has risen 2% in the last 24 hours to reach $33,438.\u201d However, Capital International should be unfazed. Day-to-day movements are practically irrelevant when you\u2019re investing in the future. NewsBTC passes the mic to James Wo, CEO of the Digital Finance Group: I believe that funds with a long investment horizon are de facto betting on Bitcoin\u2019s growth in the long term. Many of them are either already exposed to bitcoin or very close to entering the market one way or another.\u00a0 MSTR price chart on Nasdaq | Source: TradingView.com Why Invest In MicroStrategy And Not Just Buy Bitcoin Actually, Michael Saylor himself answered this question while explaining his company\u2019s Bitcoin strategy: According to Saylor, his company offers two advantages. One, Microstrategy has the ability to sweep its software cash flow into Bitcoin. Two, they have the ability to raise debt financing. They can borrow a billion Dollars with zero percent interest. Your ETF will not be able to do that.\u00a0 And yes, he compared MicroStrategy stocks to an ETF because that\u2019s his competition, not Bitcoin. Some investors want exposition to Bitcoin through a regulated market. And, despite the high demand and fillings by several high-profile financial institutions, the US SEC hasn\u2019t approved a Bitcoin ETF.\u00a0 So, MicroStrategy is Capital International’s best option at the moment. Plus, they might be fans of Michael Saylor\u2019s unapologetic approach to Bitcoin accumulation. Why Capital International’s Investment Matters To Bitcoin Institutional interest is there. And every day there are more options for that money to reach its destination. Not everyone is going to do everything they can to acquire more Bitcoin like MicroStrategy. All companies aren\u2019t able to start developing Bitcoin tools and services like Square. Not everyone will develop ramps to accept Bitcoin for their product and then suspend the program for bogus reasons like Tesla.\u00a0 Related Reading | Binance Burns Record $600 Million BNB In Its 15th Quarter Different options for different folks. However, there are risks involved. NewsBTC quotes Second Foundation Partners\u2019 Ben Hunt:\u00a0 He describes the strategy as a way to accommodate and swallow Bitcoin, which is what they\u2019ve done with every other financial innovation. Adding it\u2019s preferable to stifle its censorship resistance and turn it into another Wall Street gaming table. The upshot to this is a future where people are encouraged to buy Bitcoin. \u201cBecause the artistic Bitcoin identity I admire and value has been subverted by the neutering machine of Wall Street and the regulatory panopticon of the US Treasury Dept. Did that already happen? Or can an open network like Bitcoin overcome this hurdle with ease? Members of the community do say that \u201cBitcoin doesn\u2019t care\u201d about mundane actions. In any case, institutional investment interest is there, and the chips will fall where they may. To close this, James Wo continues with the idea that funds are \u201cbetting on Bitcoin\u2019s growth in the long term\u201d: A certain amount of this upward momentum has already been factored into the price we have at the moment. However, scarcity is an essential factor that is yet to show the real impact in the long term. The game is just beginning, but the cards are already on the table. Things are looking good for Capital International and Bitcoin in the long term. Plus, the decentralized network has scarcity as an ace up its sleeve. Featured Image by Mathieu Stern on Unsplash – Charts by TradingView<\/p>\n","protected":false},"author":539,"featured_media":467338,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[83857,432,532,15702,83860,83855,83859,83856,14182,83858,83344,81299,3799],"class_list":["post-467337","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-ben-hunt","tag-bitcoin-acceptance","tag-bitcoin-etf","tag-bitcoin-etf-rejection","tag-bitcoin-istitutional-adoption","tag-capital-international","tag-digital-finance-group","tag-econd-foundation-partner","tag-institutional-investment","tag-james-wo","tag-michael-saylor","tag-microstrategy","tag-sec"],"acf":[],"yoast_head":"\nMSTR price chart on Nasdaq | Source: TradingView.com<\/a><\/pre>\n
Why Invest In MicroStrategy And Not Just Buy Bitcoin<\/span><\/h2>\n
Why Capital International’s Investment Matters To Bitcoin<\/span><\/h2>\n
Featured Image by Mathieu Stern<\/a> on Unsplash<\/a> - Charts by TradingView<\/a><\/pre>\n","protected":false},"excerpt":{"rendered":"