MicroStrategy Gets Benefit from Huge Buying of Bitcoin, Its Share Rises to Record High

There is excitement in the crypto market after the victory of Donald Trump in the presidential election in America. The price of Bitcoin, the largest cryptocurrency in terms of market value, is also increasing. Institutional investors are also betting in this segment. Enterprise software maker MicroStrategy has a large investment in Bitcoin.

This American company had recently purchased bitcoins worth $4.6 billion. Even before this, MicroStrategy had a large reserve of this most popular cryptocurrency. The company’s investors have also supported increasing investment in Bitcoin. This is indicated by the rise in the shares of MicroStrategy. The company’s shares increased by more than 12 percent on Monday. MicroStrategy’s shares have risen more than 500 percent this year. In comparison, the share price of Microsoft, one of the largest software companies, has increased by about 11 percent.

MicroStrategy had said that it had purchased 51,780 bitcoins at an average price of $88,627 per bitcoin. For this the company has spent approximately 4.6 billion dollars. Earlier this month also the company had made a big purchase in Bitcoin. It holds a strong position in the enterprise software segment. The company’s total holding of Bitcoin has increased to approximately 3,31,200 Bitcoin. The company had told that it is raising funds by selling shares.

Earlier this month, MicroStrategy spent more than $2 billion buying approximately 27,200 bitcoins. The company’s chairman, Michael Saylor, had decided to invest in Bitcoin as a hedge against inflation. Initially this company used to buy bitcoins in exchange for cash. However, since then it has been using the proceeds from the sale of shares and convertible debt to buy Bitcoin. During the election campaign, Trump had indicated not to make strict regulations for this segment. There are a large number of people investing in the crypto market in America. These investors are also expected to contribute to Trump’s victory. A new government led by Trump will take charge in America early next year. The agenda of this government may also include making laws for crypto.