Bitcoin Vs Dollar: MicroStrategy will borrow $600 million to buy more of cryptocurrency bitcoin, as the cryptocurrency smashed the $50,000 mark on Tuesday, February 16, continuing its dizzying rally backed by wider acceptance among mainstream investors. The major bitcoin corporate backer made its first investment in August last year, buying almost 25,000 bitcoin for $250 million. Shares of MicroStrategy gained more than four per cent on the news, adding to its meteoric 580 per cent surge in the past year. The world’s largest publicly traded business intelligence company already owns close to 72,000 bitcoin, valuing its bitcoin holdings at around $3.6 billion. (Also Read: Bitcoin Crosses $50,000 In Historic Win, Gains Further Mainstream Acceptance: 10 Points )
The world’s most popular cryptocurrency continues its bull stint after billionaire Elon Musk’s electric vehicle company Tesla Inc bought $1.5 billion of the currency earlier this month. This has resulted in a big push towards mainstream acceptance for bitcoin as it has attracted endorsements from business personalities and celebrities. Investors are raising stakes on bitcoin that it will soon be an alternative to central-bank issued currencies. (Also Read: Bitcoin Shoots Higher To $48,216 In Dizzying Rally After Tesla’s Investment:10 Points )
Even though cryptocurrencies, including bitcoin, have experienced a controversial journey due to their speculative nature and volatility, major companies such as Bank of NY Mellon, BlackRock Inc, Mastercard have supported bitcoin in the recent past. US online payments firm PayPal has even allowed customers to make use of bitcoin on its network, which resulted in a broader bull run for the cryptocurrency since October 2020. (Also Read: Bitcoin Surges To All-Time High Of $48,481 After BNY Mellon Welcomes Digital Currency )
MicroStrategy said last week that it sees bitcoin coffers as long-term holdings and does not plan to trade regularly in the digital currency. The company plans to issue $600 million in convertible notes in order to fund its bitcoin purchase, after issuing $650 million in notes in December as well, to buy the currency. After smashing the historic $50,000 mark yesterday, bitcoin stayed above the milestone and was last up 4.59 per cent at $50,549.6 against the US dollar.