Investment banking giant Morgan Stanley has acquired 792,627 shares in business intelligence firm MicroStrategy, representing a stake of 10.9%. Morgan Stanley apparently purchased the shares on Dec. 31, according to a filing made with the U.S. Securities and Exchange Commission (SEC). Over the past months, the business intelligence firm has been serially investing in Bitcoin, currently holding over $2 billion in the cryptocurrency.
Shares of MicroStrategy Soared by 330% Since Buying Bitcoin
MicroStrategy had a poor market valuation since it initially started investing in Bitcoin. Its shares fell by 13% from Jan. 2, 2020, through Aug. 10, 2020. Its shares soared by 330% since the firm bought its first Bitcoin on Aug. 11, 2020, rising from $123.80 to $539.57.
Just weeks ago, MicroStrategy also announced a $400 million securities to raise more funds to buy more Bitcoin. As of Dec. 21, 2020, the firm has bagged more than 70,470 bitcoins.
At the time, CEO Michael Saylor said of the firm’s choice:
“This is not a speculation, nor a hedge. It is a deliberate corporate strategy to adopt the Bitcoin Standard.”
Bitcoin As a Hedge Against Inflation
Bitcoin has recently climbed above $41,000 amid continued interest in the cryptocurrency as a hedge against inflation and an alternative to the falling dollar. Crypto experts are claiming that Bitcoin’s bull run is mostly attributed to the increased institutional spending towards the cryptocurrency.
In an interview on the Funky Crypto Podcast, Michael Saylor stated the importance of holding BTC:
“How are you going to feel if you sell it at $27,000 and then you wake up one morning and it goes to $82,000… when it goes to $167,000… when it goes to a million. When it goes to a million, are you going to be bragging that you bought it at $0.019 million and you sold it at $0.022 million? Aren’t you going to feel freaking stupid? Like I bought it at $0.019 million and I sold it at a 50% gain at $0.023 million and I lost a million!”