MicroStrategy, a business intelligence and analytics firm, has seen its share prices climb to a two-year high after the company revealed that it had purchased $250 million worth of bitcoin.
The move has boosted investor sentiment towards the cryptocurrency and fuelled the rally in its prices. Other major corporations including Square and Ruffer Investment Company have also recently made public declarations of their commitment to buying the digital currency, helping to increase demand for bitcoin.
Michael J. Saylor, MicroStrategy’s CEO, said the firm was “proud to have prefaced and inspired a wave of similar announcements of institutional adoption of bitcoin from corporate treasuries”.
He added, “We appreciate the trust our shareholders have placed in us to capitalize on this unique opportunity and to acquire a large position in bitcoin.”
MicroStrategy’s move signals that it has a long-term commitment to bitcoin and optimism about the digital asset’s future potential. Some analysts and investors have suggested that the company’s bold move on bitcoin could prove to be a watershed moment for the industry.
While corporate adoption of bitcoin is still in its infancy, the fact that major companies are showing a commitment to the asset is a sign of further mainstream acceptance. If bitcoin continues to receive such endorsements from well-known companies, it could drive further institutional adoption.