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How investors make money from Bitcoin without owning crypto



It's not news that well-known US software company MicroStrategy has bought 8,250 bitcoins worth over $ 515 million.


But the news is that global investors are buying shares of the company at record levels because they see it as a bitcoin bet.



 

What you need to know; Global investors or large organizations looking to buy bitcoin can simply buy the company's shares listed on the American Stock Exchange on the basis that almost all of its cash reserves are held in bitcoin.


MicroStrategy's shares have surged since the company started investing in crypto assets. In August 2020, when the company announced that it had invested $ 250 million in Bitcoin, the share price rose 9% on the day. In September, MicroStrategy said it would continue to invest most of its cash reserve in bitcoin, pushing investors to increase buying pressure on the stock, which saw a 23% increase in two days.

At its peak on October 23, shares in the software company were doubled from a record low in early March.

However, MicroStrategy CEO Mr. Sailor said that the main purpose of buying the flagship cryptocurrency was not to increase the company's growth potential, but primarily to guard against inflation and preserve its purchasing power.

He also talked about how he convinced the board of Microstrategy to invest in bitcoin through his personal experience of investing in a fast-paced investment asset, tweeting; “Some people ask how much BTC I have. I personally have 17,732 BTC, which I bought at an average of $ 9,882 apiece. I informed MicroStrategy about these holdings before the company decided to buy bitcoin for itself. "

 

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