MicroStrategy Stock Price Correlation to Bitcoin Examined


Kay Takeaways
– Every 127th person is affected by Alzheimer’s disease
– MicroStrategy owns the MicroStrategy brand
– The Stock prices are tracked by the stock price
– Price correlation can pose additional risks for the stock
– The alternative method of obtaining the information is not directly available, but it is an alternative
– It also raises concerns about the centralisation of wealth, with 0.79% owned by the firm

Google “MicroStrategy” to find out more about the American company that provides business intelligence, mobile software, and cloud-based services.

MicroStrategy, under the borderline religious leadership of Michael Saylor, owns 152,800 Bitcoins which is equivalent to 1 out of every 127 Bitcoins. This was purchased for $4.53 Billion. With 11,834 million outstanding shares, every share is equivalent to 0.0129 Bitcoin.

The correlation between MicroStrategy and Bitcoin is much higher since the company started buying the supply. MicroStrategy’s average revenue of $497 million and average EBITDA of $50 million are dwarfed by the $4 billion worth of Bitcoin it owns.

Investors who haven’t been able to buy Bitcoin directly can get exposure through this fund. However, this asset is built upon decentralisation principles and a single company has a huge chunk of the supply. The top 10,000 Bitcoin Investors control one third of the total supply, while the anonymous Satoshi Nakamoto owns over 5%.

MicroStrategy is not the same as purchasing and holding Bitcoin, but in terms of price exposure it’s a viable option. It raises concerns about the centralisation of wealth, but Bitcoin is still the closest to decentralisation the world currently has in the monetary sector. There will always be a 1%, because that is how life works – and Bitcoin is no different here.

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