What happened: Tesla Ing (NASDAQ: TSLA) and Square Inc. (NYSE: SQ) is already more than $ 5 billion on their Bitcoin investments.
According to data from Bitcoin Treasuries, the two companies spent more than $ 3 billion to acquire 151,919 BTC, which is now valued at more than $ 8 billion.
Why it matters: Tesla bought 48,000 BTC for $ 1.5 billion and recorded a profit of more than 70% on its Bitcoin investment, which now stands at $ 2.5 billion.
This yield is somewhat pale compared to MicroStrategy’s (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 the initial Bitcoin purchase, after remaining relatively flat for five years.
At this point, MicroStrategy is only going to serve as a bitcoin ETF
– John Todaro (@ JohnTodaro1) 17 February 2021
The fact that the market value of the business intelligence business is so dependent on BTC price movements has led many analysts to know that MicroStrategy’s stock functions effectively as a Bitcoin ETF.
Conversely, companies such as Square and Tesla have not affected their share price too much by the underlying price of Bitcoin.
What else: Somewhat confirm the hypothesis that smaller stock markets are more dependent on their Bitcoin purchase to add value to their price Voyager Digital Ltd (CNSX: VYGR), Riot Blockchain Inc. (NASDAQ: RIOT), and Marathon Patent Group Inc. (NASDAQ: MARA).
Marathon has risen more than 4000%, while Riot and Voyager have risen by more than 5000% in the past year.
Image: Austin Distel via Unsplash
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