MicroStrategy will pitch Bitcoin to 1,400 public companies: How will BTC price react?

MicroStrategy will pitch Bitcoin to 1,400 public companies: How will BTC price react?

MicroStrategy, a $6.37-billion business intelligence conglomerate in the United States, will meet with public companies on Thursday to discuss Bitcoin (BTC).

Michael Saylor, CEO of MicroStrategy, said that professionals from over 1,400 firms are joining the event.

“If you are interested in the legal considerations firms face while integrating Bitcoin into their corporate strategy, you are not alone,” Saylor wrote. “We have professionals from more than 1400 firms joining us tomorrow for this discussion.”

He also said that he has never seen so many CEOs sign up to attend one of its events, adding: 

“Every company can benefit from plugging into the Bitcoin Monetary Network.”

Why is MicroStrategy discussing Bitcoin with public companies?

Ever since MicroStrategy started to aggressively accumulate Bitcoin in the summer of 2020 as its main treasury asset, there has been a clear increase in institutional demand.

Bitcoin is becoming more compelling as a store of value and a safe-haven asset as the fear of inflation continues to intensify. The demand for Bitcoin has been evident in the rising inflows into Grayscale Bitcoin Trust and large Coinbase outflows, as just some examples.

High-net-worth investors in the U.S. rely on Coinbase to purchase Bitcoin and typically withdraw the BTC they purchase to self-custody wallets.

Hence, when Coinbase outflows increase, it signals that large buyers in the U.S. are buying BTC. On Monday, CryptoQuant CEO Ki Young Ju said:

“Massive Coinbase outflows. 15k $BTC at 32.4k Looking at the TX, it went to custody wallets that only have in-going transactions. It’s likely to be OTC deals from institutional investors. I believe this is the strongest bullish signal.”
MicroStrategy will pitch Bitcoin to 1,400 public companies: How will BTC price react?
Bitcoin Coinbase Pro outflow. Source: CryptoQuant.com

The accumulation of Bitcoin by big players in the U.S. coincides with the growing institutional interest in Bitcoin and the upcoming meeting between MicroStrategy and public companies.

MicroStrategy has also been actively buying the dips in recent months. The latest purchase came on Tuesday, with MicroStrategy adding another $10 million in Bitcoin.

The company now holds 71,079 BTC, worth $1.145 billion, which it purchased at an average price of $16,109 per BTC. Saylor wrote:

“MicroStrategy has purchased approximately 295 bitcoins for $10.0 million in cash, at an average price of ~ $33,808 per #bitcoin. We now #hodl ~ 71,079 bitcoins acquired for $1.145 billion at average price of ~ $16,109 per bitcoin.”

What happens next?

If inflows into the Grayscale Bitcoin Trust and outflows from Coinbase spike considerably after the meeting, then it may suggest that some companies may have bought BTC.

MicroStrategy will pitch Bitcoin to 1,400 public companies: How will BTC price react?
MSTR vs. BTC vs. NASDAQ. Source: Ecoinometrics

There is a real possibility that some of these 1,400 companies will follow MicroStrategy’s footsteps, particularly considering the effect investing in BTC had on the company. In fact, MSTR is one of the few stocks that has even outperformed BTC in the past few months.

Currently, Bitcoin is hovering under the $38,000 resistance level, which is the last remaining resistance before the $40,000–$42,000 range.

Title: MicroStrategy will pitch Bitcoin to 1,400 public companies: How will BTC price react?
Sourced From: cointelegraph.com/news/microstrategy-will-pitch-bitcoin-to-1-400-public-companies-how-will-btc-price-react
Published Date: Wed, 03 Feb 2021 14:00:00 +0000

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Wayne Roberts

Wayne Roberts – Business News   I am Wayne Roberts, I have done my bachelor’s in English literature, and further on I did my master’s in business. My most preferred genre of writing is business and finance. I have been writing from the past 5 years about articles, web content, and blogs. In my career and education, I like to play along with work. I have also been a teacher in the past for 4 years. I use to teach business and technical writing in a very famous university. However, most recently I am working as an instructor, designer, and training writer. I enjoy socializing a lot. I am a very big extrovert when it comes to my nature. A part of all this I enjoy exploring the world and traveling make me happy.

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