What happened: Tesla Inc (NASDAQ: TSLA) and Square Inc (NYSE: SQ) are already over $ 5 billion in their Bitcoin investments.
According to Bitcoin Treasuries data, 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 gain of more than 70% on its investment in Bitcoin, which now amounts to $ 2.5 billion.
This return pales a little compared to MicroStrategy (NASDAQ: MSTR) $ 1.15 billion investment that is now worth $ 3.9 billion.
The company’s stock price has risen more than 500% since the announcement of its initial purchase of Bitcoin, after having remained relatively stable for five years.
At this point, MicroStrategy will just file as an ETF bitcoin
– John Todaro (@ JohnTodaro1) February 17, 2021
The fact that the market value of the business intelligence firm depends so much on BTC’s price movements has led many analysts to say that MicroStrategy’s stock effectively functions as a Bitcoin ETF.
On the other hand, companies like Square and Tesla have not seen their share price excessively influenced by the underlying price of Bitcoin.
What else: Confirm a little the hypothesis that stocks with lower market capitalization are more dependent on the purchase of Bitcoins to add value to their price. Voyager Digital Ltd (CNSX: VYGR), Riot Blockchain Inc (NASDAQ: RIOT), and Marathon Patent Group Inc (NASDAQ: MARA).
The Marathon rose more than 4,000%, while Riot and Voyager rose more than 5,000% last year.
Image: Austin Distel via Unsplash
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