On Tuesday, the NASDAQ-listed business services company MicroStrategy bought $175 million worth of Bitcoin. This came just weeks after the company siphoned $250 million into the leading cryptocurrency, citing its ability to act as a reserve asset better than U.S. dollars. At the time, company chief executive Michael J. Saylor said:<\/p>\n
\u201cThis investment reflects our belief that Bitcoin, as the world\u2019s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.\u201d<\/p><\/blockquote>\n
This was a stark reversal from Saylor’s previous sentiment about the leading cryptocurrency. The executive said over five years ago that he thought Bitcoin was on its way out.<\/p>\n
Commenting on the latest purchase, Saylor said to crypto outlet CoinDesk that this was a concerted effort to make Bitcoin a reserve asset.<\/p>\n
The market has rewarded MSTR’s purchase, despite them slightly being at a loss due to the purchase.<\/p>\n
Related Reading: Kiss\u2019 Gene Simmons Is Looking Into Bitcoin: Gone Mainstream<\/a><\/h6>\n
MicroStrategy Stock Continues to Rally After Bitcoin Purchase; Company Now 1\/3 BTC<\/strong><\/h2>\n
As of the time of this article’s writing, MicroStrategy’s shares listed on the NASDAQ are up 9% during Wednesday’s trading session. This comes after an 8% performance on Tuesday and a 50% surge in the span of a few months.<\/p>\n
Analysts think that this surge is notable as it shows that the market is rewarding the move to Bitcoin, thereby pushing other companies to accept the cryptocurrency.<\/p>\n
Jeff Dorman of Arca commented:<\/p>\n
\u201cEvery other Corporate Finance team at public companies saw the 10% move higher in MicroStrategy\u2019s stock price. [\u2026] The move in MicroStrategy\u2019s stock upon announcement of a BTC \u2018cash\u2019 position will incentivize other CorpFin teams to consider this.\u201d<\/p><\/blockquote>\n
Others echoed this sentiment, noting how the ongoing rally in the MicroStrategy stock will likely force other companies to jump in.<\/p>\n
Related Reading:\u00a0This European Crypto Exchange Was Just Hacked for $5 Million<\/a><\/h6>\n
Regulatory Pressure?\u00a0<\/strong><\/h2>\n
While MicroStrategy’s move has been celebrated by many in crypto, there are some that worry some regulatory backlash may ensue.<\/p>\n
Jake Chervinsky, general counsel at DeFi’s Compound, recently commented:<\/p>\n
“No, there isn’t a loophole in the federal securities laws allowing a publicly traded company to convert itself into a bitcoin ETF without SEC approval. The more bitcoin $MSTR buys, the more likely the SEC is to start asking questions that\u00a0 @Nasdaq doesn’t want to answer.”<\/p><\/blockquote>\n
\nNo, there isn't a loophole in the federal securities laws allowing a publicly traded company to convert itself into a bitcoin ETF without SEC approval.<\/p>\n
The more bitcoin $MSTR<\/a> buys, the more likely the SEC is to start asking questions that @Nasdaq<\/a> doesn't want to answer.<\/p>\n
— Jake Chervinsky (@jchervinsky) September 15, 2020<\/a><\/p><\/blockquote>\n