Microstrategy has invested a further $1.026 billion in Bitcoin, bringing its total investment in the asset close to $5 billion. With corporate and institutional interest in crypto assets at an all time high, the move is likely to spur further adoption of the asset class.
The ExodusPoint Partners International Fund returned 0.36% for May, bringing its year-to-date return to 3.31% in a year that's been particularly challenging for most hedge funds, pushing many into the red. Macroeconomic factors continued to weigh on the market, resulting in significant intra-month volatility for May, although risk assets generally ended the month flat. Macro Read More
With this in mind, below is an expert comment on the implications of this move from a leader in the crypto space, Konstantin Richter, the CEO and Founder of Blockdaemon, the leading independent blockchain infrastructure provider.
Commentary Microstrategy’s Investment In Bitcoin
Konstantin Richter, CEO and Founder of Blockdaemon:
“The rapid pace of institutional inflows into cryptocurrencies continues in 2021 with the news that Microstrategy has invested a further $1.026 billion into Bitcoin. The firm now holds over 90,000 Bitcoin totalling close to $5 billion as a reserve treasury asset. This strategy is paying dividends in the mainstreaming of crypto assets among corporations and institutional investors, evidenced by the fact that 1,400 firms attended the free “Bitcoin for Corporations” course provided by Michael Saylor.
More institutions will follow suit as the narrative of Bitcoin as an inflation hedge continues to hold considerable weight among investors, with recent moves by Tesla, Square, and BNY Mellon likely to be only the tip of the iceberg in what will come next. Unlike national currencies, Bitcoin has a finite supply of 21 million, which makes it a hedge against inflation akin to gold. We are moving into an exciting phase for crypto assets as the asset class moves from the fringes to become a core offering of financial markets. Overall it is great news for the crypto asset class and portends a major transformation of the crypto landscape.”