What are MicroStrategy and Bitcoin’s White Knight?

What are MicroStrategy and Bitcoin’s White Knight?

Written by Moli Mishra, In Crypto, Updated On
April 21st, 2024

Like Bitcoin, MicroStrategy has walked a long path into the crypto market from its inception. Bitcoin’s role in this environment is as essential as a blockchain in a cryptocurrency’s lifecycle. MicroStrategy is a bull in the crypto market with its roots in the broad crypto market. It was none other than MicroStrategy that considered Bitcoin a source of value. A reliable cryptocurrency exchange, such as the Bitcoin Code site, will only accept coins that have practical applications and are currently exchanged.

This opened doors for other market giants to purchase bitcoins and digital assets efficiently. MicroStrategy has been seen as a digital currency enthusiast for a very long time. However, the question is whether it holds digital currencies and NFTs like Ethereum and other crypto derivatives. In this article, we will discuss the role of MicroStrategy in the world of Bitcoin.

MicroStrategy- A beginning

Bitcoin’s White Knight

MicroStrategy’s primary role is to provide powerful analytics and business tools. The main brain behind this software technology is Michael Saylor, who, in 1989, came up with the idea of this vital tool. Nowadays, MicroStrategy’s reach is wide and wide. Big companies like Visa and Porshe are using many of Its Products. Many platforms are being developed in the entire crypto environment. A part of MicroStrategy is the provision of cloud computing techniques and other digital services.

MicroStrategy in the digital market

One of the most famous crypto news platforms, Coingecko, in its February edition, has marked MicroStrategy’s holdings. According to the report, MicroStrategy holds more bitcoin than any company out there in the public. It has even surpassed the most famous coin exchange platform, Coinbase. According to the analysts at MicroStrategy, the platform has long seen BTC as a potential source of investments.

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Buying Bitcoin at first

MicroStrategy’s interest in Bitcoin can be seen from mid-2022 when the inflation hedge occurred. Due to the role of the pandemic at that time, the U.S. economy was falling. As a result, MicroStrategy’s CFO, Phong Le and Saylor, tried to find ways to shift some of their assets to noninflator investments. In a similar year, MicroStrategy acquired many BTCs in the market. Since then, MicroStrategy is constantly adding up with their BTC value and is a constant and regular investor.

MicroStrategy is selling their BTC.

As recent times were not so favourable for Bitcoin, some media outlets started selling their news under the heading that MicroStrategy sells off its reserves. In return for these statements, Saylor came up with the statement that MicroStrategy has been selling these for internal reasons and that nothing robust has been done by selling these assets. Moreover, after a short while, MicroStrategy started repurchasing bitcoins.

MicroStrategy liquidation prices

The market giant Binance has stated that Silvergate loans mostly fund MicroStrategy’s investment. MicroStrategy also has some leveraged positions in Bitcoin and other tech firm-related subsidiaries. According to analysts, if the bitcoin price ever falls to $13,644, MicroStrategy will welcome a severe margin call, and there are very few chances of MicroStrategy selling anytime soon.

Wrapping up

Thus, MicroStrategy is a robust tool in the crypto market. Every market infrastructure needs a backbone, and MicroStrategy can be called one. Along with bitcoins, MicroStrategy holds more cryptocurrencies and will not sell any of its holdings soon. MicroStrategy’s future is bright and will run a long way.

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