Ripple jumps by 4% as investors intensify buying spree

MicroStrategy is obviously in big profits, after making the right bets in buying the world’s most popular crypto asset on the account it has been one of the largest buyers of bitcoin in the modern era.

What you should know: Data retrieved from Bitcoin Treasuries revealed the American publicly listed company bought a total of $1.125 billion worth of Bitcoins over a period of time and now has a market value is worth $2.428 billion, printing a gain of over $1.2 billion.

READ: Bitcoin starts 2021 with a new milestone

The leading American business intelligence firm listed on an American Stock exchange deployed about $250 million into Bitcoin in August and then added $175 million a month after.

  • These two investments represented the first and second time a publicly-traded corporation had bought Bitcoin for investment purposes.
  • MicroStrategy increased its buying pressure subsequently by investing an additional $50 million and even going as far as to raise $650 million in the debt market.
  • By the end of 2020, MicroStrategy had confirmed it had spent $1.125 billion to purchase 70,470 bitcoin, implying a cost basis of $15,964 per Bitcoin

READ: Ethereum on a rampage, fast approaching $1,000

What this means: Last year, the world’s smartest investors were buying into Bitcoins amid an era of significant quantitative easing by global central banks.

Such macros taking shape in the ever-changing crypto market has led Gemini crypto exchange co-founders Tyler and Cameron Winklevoss to disclosing why investors are buying Bitcoin, amid recent price correction prevailing.

READ: Computers might steal Satoshi Nakamoto’s Bitcoin fortune

Tyler Winklevoss said the rally isn’t retail-driven this time.

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“These are the most sophisticated investors, the smartest people in the room, buying the bitcoin quietly. It’s not a FOMO thing, so it’s very different than in 2017. This cast of characters, companies, and investors were not in bitcoin back then.

READ: Ripple’s co-founder earned $411 million from selling XRP in 2020

“Publicly traded companies like Square and MicroStrategy are putting their treasury cash into bitcoin because they’re worried about the oncoming inflation and the scourge of inflation with all the money printing and the stimulus from the Covid pandemic lockdown,” Winklevoss said.

READ: Why buying Bitcoin now looks like investing in Google, Apple, Facebook 10years ago

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