This Company Just Bought $1.4 Billion of Bitcoin. Should You?
Strategy (NASDAQ: MSTR) just bought more than $1.4 billion of Bitcoin on April 28 (CRYPTO: BTC), and it isn't the first time. With such a purchase, the company is sending an unambiguous signal that it thinks the coin's value is going to continue increasing.But that doesn't mean you should follow in Strategy's footsteps blindly. Let's evaluate its approach and its rationale so that you will know whether it makes sense to invest in Bitcoin too, or if it would be better to allocate your capital elsewhere.Strategy now holds about $52 billion of Bitcoin, which works out to roughly 2.6% of the entire supply. During the past six months or so, the business has been purchasing about 2,087 bitcoins daily, which is a vastly larger amount than the roughly 450 bitcoins that are freshly mined each day. Therefore, this purchasing activity is a relatively new and significant supply constraint that is helping to push the price of the coin higher.Continue reading
Strategy (NASDAQ: MSTR) just bought more than $1.4 billion of Bitcoin on April 28 (CRYPTO: BTC), and it isn't the first time. With such a purchase, the company is sending an unambiguous signal that it thinks the coin's value is going to continue increasing.
But that doesn't mean you should follow in Strategy's footsteps blindly. Let's evaluate its approach and its rationale so that you will know whether it makes sense to invest in Bitcoin too, or if it would be better to allocate your capital elsewhere.
Strategy now holds about $52 billion of Bitcoin, which works out to roughly 2.6% of the entire supply. During the past six months or so, the business has been purchasing about 2,087 bitcoins daily, which is a vastly larger amount than the roughly 450 bitcoins that are freshly mined each day. Therefore, this purchasing activity is a relatively new and significant supply constraint that is helping to push the price of the coin higher.
