MicroStrategy is investing in bitcoin because they are in a safe and secure base to search. “We have to have that capital to our investors, our employees, our customers and our partners to ensure that we have the good and the bad times will survive.’
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The Dollar is weaker and weaker
If the myth is still around, so do institutional investors is not, in bitcoin investment, that can be disproved with a counter-argument. There is a reason for this is that as a publicly traded company (up to the value of billions of dollars that investors are telling them that they have a portion of their assets in bitcoin to invest in it. The reason for this is in order to be able to arm themselves against an ever-weakening us dollar.
It is now reasonable to assume that bitcoin is an ever-increasing share of the different investment portfolio is. Bitcoin offers investors a lot of upside benefits, as well as provide insurance against political risks.
Organisations and businesses choose bitcoin
The demand for bitcoin is growing larger and larger as the price of the digital asset to newer highs is reached. The rise of institutional investment funds in to the tremendous demand from the private sector, and the macro-investors, the fundamentals of bitcoin paints a very optimistic picture.
There is only one catalytic converter, which is to be ignored, and that could lead to a further inflow of capital into Bitcoin businesses.
Portfolio of MicroStrategy
MicroStrategy, a business analysis software, is to invest in precious metals, and bitcoin in order to make their balance sheet stronger. While the company’s profit to pay out to its shareholders, will the money to hold for inward investment to help the company grow.
Phong Le, chief financial officer of MicroStrategy, told analysts during a conference about the kwartaalwinsten that the company has $ 250 million to invest in stocks and shares, silver as well as gold and bitcoin.
Co-founder and CEO Michael Saylor in response to a later, the need for these investments are as follows:
That being said, we have a healthy capital reserve. It’s the equivalent of our endowment, as an institution, and we have to have that capital to our investors, our employees, our customers and our partners to ensure that we have good and bad experience. Thus, even though the potential dilution to the capital in the dollars-to-wear, that does not mean that we have the capital and don’t need it. Therefore, if we look at the assets, gold, silver, bitcoin and stocks are all on the rise, while the dollar weakened.’
Capital increase
In addition to hedge funds such as Renaissance Technologies and Tudor Investment Corp, are looking to traditional firms, also to financial markets for their capital base, to expand it. Each of the state-owned company, has a number of investments in a single asset or in several assets.
For example, Apple’s by the end of 2019 170 billion worth of long-term investment, and the 40,39 billion in short-term investments on the balance sheet. As the dollar weakens, it will be capital-to-risk assets in order to prevent this, the companies lose their purchasing power.
Big companies like Apple and Microsoft have a preference shares, as these are more liquid. Bitcoin may have its own unique place in a portfolio himself. Even though the bitcoin price in 2020 is quite a risky behavior, it acts as bitcoin as an insurance policy against political and financial uncertainty.
Monetary terms: If the central banks in these monetary discussion will continue with the low interest rates and a geldprinter, which continues to operate, more companies will want to consider adding bitcoin to their portfolio (s) to be added. So if the yield on bonds is negligible, and can be.