Recently, MicroStrategy, a leading player in the business intelligence realm, reached an enviable milestone. The company’s market capitalization surged past $100 billion, making it the 93rd biggest publicly-traded entity in the United States. Astonishingly, the volume of MSTR shares being traded outpaced large-scale players such as Tesla and Nvidia, leaving traditional traders, including the Wall Street Bets community, awestruck.
Just a few years ago, MicroStrategy was a $1 billion entity when it first invested in Bitcoin. The monumental growth of the company, which now hovers around a sensational $100 billion, is a testament to the power of strategic investments in digital currencies like Bitcoin.
The primary concern for market watchers and investors is the trajectory of MSTR’s growth. If the company’s value continues its upward trend until the market’s peak, the height it might reach is unpredictable. However, the flip side is the potential for a significant crash during a bear market, as MSTR’s performance is closely tied to Bitcoin.
Despite concerns about potential downturns in Bitcoin’s value and the anticipated normal Bitcoin bear market, it’s clear that MicroStrategy’s Bitcoin for Corporations strategy has been a resounding success. This has prompted other public companies to follow suit and incorporate Bitcoin into their balance sheets or announce plans to do so.
An example is Rumble, whose CEO recently polled his audience, asking if he should add Bitcoin to their balance sheet. The response was overwhelmingly positive, with nearly 94% of the 42,522 voters endorsing the move.
MicroStrategy’s CEO, Michael Saylor, has even offered to guide Rumble on the incorporation of a corporate Bitcoin strategy. This trend of institutional Bitcoin adoption is set to expand in the future. As more companies realize the strategic advantage of adopting Bitcoin as a reserve asset, it’s expected that the number of public companies doing so will skyrocket.
Companies that embrace Bitcoin are likely to surpass even the major tech giants in terms of trading volume, like MicroStrategy has demonstrated. From a trader’s perspective, investing in a company that doesn’t have Bitcoin in their balance sheet seems uninteresting.
Incorporating Bitcoin in the balance sheet introduces an element of volatility, creating opportunities for traders and benefiting the stock price and overall company performance. As such, for publicly-traded companies, including Bitcoin as a treasury reserve asset seems like a smart move.
This article represents the author’s personal viewpoints and does not reflect the opinions of BTC Inc or Bitcoin Magazine.
