The New Investing Trend is The Cryptocurrency (BTC)
They said ‘2021 is going to be years of cryptocurrency.’ And we are seeing first clues these days.
For a company like Tesla with a market value of $ 800 billion, the $ 1.5 billion investment in Bitcoin is not a big sum. However, the fact that the company shows Bitcoin among its financial assets means a lot for Bitcoin.
Partly with the support of institutional investors, the Bitcoin price has quadrupled in the last four months and managed to surpass the record increase in 2017. Some investors see Bitcoin as a protection against inflation.
Tesla shares fell 1.6 percent on Tuesday after rising on Monday following the Bitcoin announcement, but the increase in company shares reached 20 percent in 2021. In the same period, the S&P 500 index increased by 4 percent.
Companies that are much more intimate with Bitcoin compared to Tesla because of the lower company values also made a profit after Tesla’s announcements and increased their already strong stock gains.
MicroStrategy shares, whose CEO Michael Saylor is known to be a serious Bitcoin lover, rose 22 percent yesterday. After this increase, the weekly increase exceeded 50 percent, while the company’s shares rose 200 percent in 2021. While the company currently has 71,079 Bitcoins worth over $ 3 billion, this figure corresponds to almost one-fourth of the company’s market value of $ 11.8 billion.
Canadian fintech company Mogo, which announced that it will invest $ 1.5 million in Bitcoin in December, rose 45 percent yesterday. Since Tesla’s announcement, the total increase in company shares has reached 85 percent, while the company’s market value has increased to $ 318 million.
While the payment tool Square shares lost about 1 percent in value, the increase in the company’s shares in 2021 remained at the level of 19 percent. In October, Square announced that it had bought 4,709 bitcoins with an investment of $ 50 million, equivalent to about 1 percent of its total assets. Currently, the company’s Bitcoin portfolio is worth more than $ 200 million.
Marathon Patent Group, which is a Bitcoin mining company, announced in January that it received 4,900 Bitcoins for $ 150 million. The company’s shares rose 60 percent this week, while the increase compared to last year is 260 percent.
Paypal also joined the caravan of companies trading Bitcoin in October and began allowing customers to buy and sell Bitcoins and to hold Bitcoin in their virtual wallets. The company’s shares increased by 21 percent in 2021.
