One of the largest financial companies on the west coast of the United States is investing in MicroStrategy stock. $560 million is at stake.
Indirect investment in Bitcoin (BTC)
According to information coming out of SEC documents, Capital International Group has decided to purchase 12.2% of MicroStrategy’s shares. This puts it in second place after Black Rock among the largest shareholders of Michael Saylor’s company.
Capital Group is a Los Angeles based company. In its investment portfolio we can find assets with a total value of USD 2.3 trillion. For Capital Group, the purchase of MicroStrategy shares is an investment of the equivalent of $560 million. Interestingly, despite being a financial company, it has never officially looked at the cryptocurrency market before. This kind of purchase indicates that bitcoin is taken quite seriously by the company, even though we are not dealing with its direct purchase here.
MicroStrategy a leading BTC whale
MicroStrategy’s adventure with Bitcoin started quite late. The company’s CEO Michael Saylor declared at the Bitcoin 2021 conference, which took place in Miami, that he only purchased his first BTC in June 2020. However, this was not an obstacle for MicroStrategy to become the largest listed Bitcoin whale today, with about 110,000 coins under management. Michael Saylor himself has since become one of the most recognizable figures in the cryptocurrency world. He has also conducted webinars for entrepreneurs, explaining to them the essence of Bitcoin, its characteristics, usability and the opportunities behind it.
What does Capital International Group’s investment mean for the cryptocurrency market?
Capital International Group is another financial market company interested in Bitcoin. Of course, you may notice that it is not buying BTC from exchanges, but investing in the largest listed whale on the market. The value of MicroStrategy’s shares is mainly based on the company’s crypto assets, which, in the situation of their significant increases on the market, can strongly increase the value of the company. The experienced representatives of Capital Group know this. It can be assumed that their investment is supported by deep research of the Bitcoin market and predictions of further rally of its price.
It is also interesting that such large institutional investments are considered to be so-called smart money. This type of capital flows into the market mainly during periods of accumulation. Could it be that the bull market will continue in the near future? Such purchases are a strong factor supporting this possibility.