Earlier this week, Bitcoin (BTC) bulls and crypto-investors were excited about the news that MicroStrategy, a Nasdaq-listed business intelligence company worth $ 1.2 billion, had formally adopted Bitcoin as its primary reserve asset by 21,454 BTC ($ 250 million). buy.
This led the majority of the top crypto-analysts and people in the industry to post uber-Bullish statements on Twitter and for many this confirmed their belief that Bitcoin is in the early stages of a bubble market.
While this news is exciting and a strong sign that institutional adoption of cryptocurrency continues to occur, there is even better news. BlackRock, the $ 89 billion investment giant, is the largest shareholder in MicroStrategy.
According to CNN Business data, BlackRock Fund Advisors has a 15.24% stake in MicroStrategy. This means that the recent acquisition of MicroStrategy BlackRock gives indirect exposure to Bitcoin, the company has essentially transformed itself into a “publicly traded Bitcoin game.”
MicroStrategy has BlackRock as its biggest stakeholder. Source: CNN Business
MicroStrategy predicts a weakening of dollars
In an official statement, MicroStrategy said it had adopted Bitcoin as a ‘primary treasury reserve.’ and CEO Michael J. Saylor acknowledged that Bitcoin could potentially be superior to cash.
Saylor said:
“Since its inception more than a decade ago, Bitcoin has emerged as a major addition to the global financial system, with features that are useful to both individuals and institutions. MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and hence Bitcoin has made the most important holding in its treasury reserve strategy. ”
The purchase becomes even more interesting considering the previous comments both Saylor and BlackRock strategists have made about Bitcoin.
In a February 2018 interview with CNBC, BlackRock’s global chief investment strategist Richard Turnill said:
“We see cryptocurrencies potentially more used in the future as the markets mature. However, we believe they should only be considered by those who could potentially incur full losses.”
At the moment, Turnill outlined some factors that could help fascinate Bitcoin in the long run. He also stressed that a global regulatory framework on cryptocurrencies could potentially help the growth of cryptocurrencies.
Since then, the Financial Action Task Force (FATF) under the G7 has established a unified regulatory framework for cryptocurrency. Most major countries in Asia, Europe and the US have also adopted clearer policies regarding cryptocurrencies.
Saylor, who this week expressed his optimism about the long trajectory of Bitcoin, had an even more critical perspective in 2013 when he sei:
“The days of Bitcoin are numbered. It just seems like a matter of time before it suffers the same fate as online gambling. ”
The perception of Bitcoin is changing
Companies that previously rejected Bitcoin are now starting to warm up to cryptocurrencies. For example, JPMorgan reported accepting Bitcoin exchanges Coinbase and Gemini as clients in May.
Changpeng Zhao, the CEO of Binance, sei:
“Smart publicly traded company buys $ 250,000,000 worth of bitcoin, as an asset for safe haven. Stimulus money flows from Wall Street into bitcoin. Are you in front of or behind them? “
This shifting trend in the cryptocurrency industry marks the increasing decline of Bitcoin and its growth as a store of value.
