What are MicroStrategy and Bitcoin’s White Knight?

What are MicroStrategy and Bitcoin’s White Knight?

Written by Moli Mishra, In Crypto, Published On
April 10, 2023

Just like bitcoin, MicroStrategy has walked a long walk right from the period of its inception into the crypto market. The role of bitcoin in this environment is as important as a blockchain has in the life-cycle of a cryptocurrency. MicroStrategy is a bull in the crypto market that has its roots in the wide type of crypto market. To consider bitcoin as a source of value, it was none other than MicroStrategy. A reliable cryptocurrency exchange, such as Bitcoin Code site, will only accept coins that have practical applications and are currently exchanged.

This resulted in the opening of doors for other market giants to purchase bitcoins and other digital assets easily. MicroStrategy has been seen as a digital currency enthusiast for a very long time. But the question is whether it holds digital currencies and NFTs like Ethereum and other crypto derivatives. In this article, we are going to discuss the role of MicroStrategy in the world of bitcoin.

MicroStrategy- A beginning

Bitcoin’s White Knight

The major role of MicroStrategy is to provide powerful analytics and tools related to the business being done. The main brain behind this software technology is none other than Michael Saylor who in the year 1989 came up with the idea of this important tool. Nowadays, the reach of MicroStrategy is far and wide. Big companies like Visa and Porshe are using many products of MicroStrategy. 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 Feb edition has marked the holdings of MicroStrategy. According to the report MicroStrategy holds more bitcoin than any company out there in the public. It has surpassed even the most famous coin exchange platform called Coinbase. According to the analysts at MicroStrategy, the platform is seeing BTC as a potential source of investments for a long-time.

Buying bitcoin at first

MicroStrategy’s interest in bitcoin can be seen right 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 namely Phong Le, and Saylor tried ways possible for shifting some of their assets to the noninflators investments. In a similar year, MicroStrategy came up to acquire a large chunk of BTCs in the market. Since then, MicroStrategy is constantly adding up with their BTC value and is a constant and regular investor of the same.

MicroStrategy selling their BTC

As the recent time was not so favorable for bitcoin, some of the media outlets started selling their news under the heading that MicroStrategy sells off their reserves. In return for these statements, Saylor came up with the statements that MicroStrategy has been selling these for internal reasons and 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 MicroStrategy’s investment is mostly funded by Silvergate loans. MicroStrategy also has some of the leveraged positions in bitcoin and other tech firm-related subsidiaries are also there. According to analysts if the price of bitcoin ever falls to $13,644, MicroStrategy will welcome a serious margin call and there are very fewer chances of MicroStrategy selling anytime soon.

Wrapping up

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

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