Institutional investors are increasingly looking at Bitcoin (BTC) as a serious asset, and an excellent example of this is MicroStrategy, a company which is publicly listed on the NASDAQ and invested $250 million into Bitcoin in August, and another $175 million into Bitcoin this month, bringing MicroStrategy’s total Bitcoin investment to $425 million.
Further, since Norway’s $1 trillion sovereign wealth fund, Vanguard, and Blackrock own a significant share of MicroStrategy, these major institutional investors now have a sizeable amount of Bitcoin in their portfolio as well. For example, Norway’s sovereign wealth fund now indirectly holds 577 Bitcoins because of MicroStrategy, whereas Blackrock and Vanguard now indirectly own over 10,000 Bitcoins collectively.
Notably, MicroStrategy has stepped up their Bitcoin investment since they believe it is an excellent hedge against the USD, which is a logical bet at a time like this, when the USD could potentially weaken due to trillions of dollars of money printing associated with the ongoing global economic meltdown.
Zooming out, it is quite possible that other publicly listed corporations will follow MicroStrategy’s lead and invest a percentage of their portfolio into Bitcoin, and each major corporation who does this will likely cause a surge in Bitcoin’s price. Indeed, even the $425 million of Bitcoins that MicroStrategy purchased likely increased the price of Bitcoin significantly.
Thus, institutional investment into Bitcoin is becoming more serious than ever before, and this could be a major force for helping Bitcoin to rally long term.