August 11, 2020, MicroStrategy It has announced that it has now been renamed to the strategy. Purchase 21,454 Bitcoin $250 million.
At the time, the operation was Strategies to protect the company’s capital They face global economic uncertainty stemming from the pandemic. But in reality, it was a high-risk corporate experiment that opened an unprecedented chapter in recent financial history.
At the time, the market reaction was immediate. As reported at the time, the company’s shares rose 14% in just a few hours. Its executive director (a character that was less well known at the time) Michael Saylor defended the play, which described Bitcoin as “harder, stronger, faster, smarter, smarter than the money that preceded it.” Not everyone shared their enthusiasm. For many analysts, it was still a dangerous operation that could have been wrong at any time.
It was not known that this purchase would mark a precedent. For the first time, public contributors have incorporated Bitcoin as their main reserve asset. Strategies did not do it because of impulse. For several months he appreciated the resilience of the network, his global acceptance, and the strength of his community. The decision, which appears to be an isolated case, turns out to be the beginning of a trend that will expand worldwide over time.
Five years later, the panorama will be fundamentally different. Over 100 companies cited in the stock market are following their strategy paths and integrating Bitcoin into their balance sheets. What began as a defensive response to inflation became a strategy for growth and diversification of reserves.
The following image provided by Bitcoin Treasuries Portal shows the declared balance of 100 major public contributors with BTC.
The list includes sectors such as technology, energy, mining, financial services and even entertainment. It’s no longer Silicon Valley fashion. Adoptions spread to Japan, Canada, Australia and several European countries. Today, maintaining Bitcoin at the Treasury is interpreted in certain circles as a sign of innovation and strategic vision.
This demand pressure for companies and systems is one of the factors that explained the current price of Bitcoin, which exceeds $120,000, at a level we’ve never seen before. The accumulation of companies will add investment funds, banks and insurance companies to integrate a new environment where BTC is no longer a niche asset but part of the global financial system.
On top of that, Strategic Strategy Not only did it affect the price of Bitcoin, Created another business model: Companies where the stock market is directly linked to BTC prices. This approach offers increased yields in the bull market, but also means substantial risks in the bear cycle.
So far, the results have been positive. None of the companies that adopted this strategy have suffered catastrophic consequences from their exposure to Bitcoin. On the contrary, many see how their capitalization was shot during the period of their assets valuation, attracting both traditional enthusiasts and ecosystem enthusiasts.
So what began as a $250 million purchase to “protect shareholders” has become a turning point in the relationship between Bitcoin and the corporate world. The strategy tested the idea that BTC can take legal space as a corporate reserve assetpromotes a growing wave of adoption.
Five years from now, it will be difficult to imagine the Bitcoin market without the presence of public companies supporting it on the balance sheet. Its operation, which appears to be a lonely commitment in 2020, has become a reference model for hundreds of companies around the world. Far from failure, experiments have changed the rules of the game forever.
(tagstotranslate)bitcoin(btc)
