The last few months have been good for Micheal Saylor and Microstrategy. The business intelligence firm that spent 2020 investing in bitcoin has now started to reap the huge rewards that come with such risk amidst the plummeting prices of the cryptocurrency.
In a new report circulating, leading global investment bank and wealth management firm Morgan Stanley has recently increased its stakes in Microstrategy to at least 10% of the company’s worth, amidst plummeting share prices. The analyst believes that the rising share prices of Microstrategy are due to the company’s investment in bitcoin.
Rising share prices have spurned Morgan Stanley’s investment
In a news report dated 8th January 2021, the United States Securities and Exchange Commission confirmed that Morgan Stanley, the foremost investment bank and wealth management firm in the U.S committed to helping individuals, institutions and governments raise, manage and distribute capital needed to achieve their set targets, have purchased about 792,627 new shares in Micheal Saylor’s MicroStrategy.
The new investment’s significance now implies that Morgan Stanley now owns at least an 11% stake in Microstrategy. The detailed report shows that the new shares were purchased on the last business day of 2020. Microstrategy has continued to enjoy a good financial year, as the technology company had seen its shares valuation move from $288 to about $550 in the last 30days.
The shares’ success is being mooted as the driving factor behind Morgan Stanley’s new investment in Microstrategy. It is also worthy to note that Microstrategy’s success is quite impressive, and a lot of analysts have attributed it to the rising prices of bitcoin, which Micheal Saylor and Microstrategy have both being committed to in the past few months.
Microstrategy and bitcoin relationship
The relationship between the technology company and bitcoin is one that can be termed as a love affair. The leading cryptocurrency, which has seen its prices attain several all-time highs, has been firmly admired by Microstrategy and its CEO, Micheal Saylor, much to the public’s delight.
Earlier in August 2020, Michael Saylor announced that Microstrategy had adopted bitcoin as the company’s official primary reserve asset. Since then, the company has joined the growing list of institutional investors, like Visa and Grayscale investment, to commit to bitcoin. On 21st December 2020, in a long series of bitcoin investments, the company topped up their investments with about $650 million worth of bitcoin.
The last purchase now means that Microstrategy has grossly invested about $2.8 billion in the crypto asset. Micheal Saylor affirmed after the latest investment in the world’s most widely-adopted cryptocurrency further shows that the company strongly believes that bitcoin is a store of value and future rewards. Saylor also stated that he believes that his firm is in the right direction and hope that they reap bountiful rewards for themselves and their shareholders from the cryptocurrency.