What happened: Tesla Inc (NASDAQ: TSLA) and Square Inc (NYSE: SQ) have already raised more than $ 5 billion in their investments in Bitcoin.
According to data from Bitcoin Treasuries, the two companies have spent more than $ 3 billion to acquire 151,919 BTC, which is now valued at more than $ 8 billion.
Because it is important: Tesla bought 48,000 BTC for $ 1.5 billion and has recorded a gain of more than 70% on its investment in Bitcoin, which now stands at $ 2.5 billion.
This return pales a bit in comparison to MicroStrategy (NASDAQ: MSTR) $ 1.15 billion investment now worth $ 3.9 billion.
The company’s share price has risen by more than 500% since the announcement of its initial purchase of Bitcoin, after it was relatively stable for five years.
At this point, MicroStrategy will present itself as a bitcoin ETF.
– John Todaro (@ JohnTodaro1) February 17, 2021
The fact that the market value of the business intelligence firm is so dependent on the price movements of BTC has led many analysts to say that MicroStrategy shares effectively function as a Bitcoin ETF.
By contrast, companies like Square and Tesla have not seen their share price heavily influenced by the underlying price of Bitcoin.
What other thing: Somewhat confirming the hypothesis that smaller market cap stocks are more dependent on their purchase of Bitcoin to add value to their price are Voyager Digital Ltd (CNSX: VYGR), Riot Blockchain Inc (NASDAQ: RIOT) and Marathon Patent Group Inc (NASDAQ: MARA).
Marathon has recovered more than 4000%, while Riot and Voyager have increased more than 5000% over the past year.
Image: Austin Distel via Unsplash
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