Here’s why other companies aren’t buying Bitcoin like MicroStrategy

It’s hard to ignore MicroStrategy in its prime, but for the past few months the company has made headlines on the crypto news thanks to its famous Bitcoin purchases. Given the all-time high Bitcoin saw this summer, and then the recent drop in prices, one might wonder why non-crypto companies aren’t following suit.

There could be several reasons for this, as a report from Arcane Research found.

Press next

The report notes that at 122,480 BTC on the last count, the company described MicroStrategy’s bitcoin tactics as “aggressive”. Additionally, each cost the company an average of $ 29,860.

Why don’t other companies feel inspired? The report found

“However, as of the first quarter of 2021, no new companies outside of the crypto ecosystem have publicly announced any Bitcoin purchases. Several reasons could explain the lack of news about new companies adding Bitcoin to their coffers. “

According to Arcane Research, the reasons for this are the risk of bad press, possible public counter-reactions due to concerns about energy consumption and the fear of MicroStrategy CEO Michael Saylor.

https://twitter.com/saylor/status/1307029562321231873?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener” data-wpel-link=”external

Research also shows that changing corporate budgeting strategies is unorthodox.

Let’s go whale watching

In an interview, Saylor responded to the question of whether non-crypto firms are entering the field. He suggested that large banking institutions allowing customers to get exposure to Bitcoin could lead to the collapse of other assets. Saylor said

“… I have Would you mind if JP Morgan started holding $ 100 billion in Bitcoin? They will pick up the phone, call their customers, all of their customers will start buying bitcoin, and the price of bitcoin will go up and another $ 100 trillion in assets will go bankrupt. “

In addition, however, some experts and analysts fear the risk that MicroStrategy will become a powerful crypto whale and thus control the market. The company’s rapidly growing Bitcoin holdings continue to raise questions about whether Bitcoin can be considered a decentralized asset as many of them are leaving crypto exchanges and moving into the company’s world.

https://twitter.com/cz_binance/status/1469047506856206343?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener” data-wpel-link=”external

Does it generate coins?

All in all, a Bitcoin investor might want to know how MicroStrategy is doing after the December slump.

The Arcane Research report concludes

Michael Saylor’s somewhat rude and eccentric demeanor may also have helped deter the company’s more conservative CEOs from even considering the Bitcoin treasury strategy. However, this strategy has worked very well for MicroStrategy so far as the company is currently making $ 2.2 billion in profit from its Bitcoin holdings. ”