MicroStrategy is Desperately Trying to Become a Bitcoin Proxy! Why?

MicroStrategy’s Bitcoin initiative might aid it to become a BTC leader quite soon

Bitcoin became quite popular in 2009 when it was first incepted. The crypto started its journey when it was valued at only fractions of a dollar, and then it took off, surging by thousands of dollars. But unfortunately, investors were initially unaware of the volatility that came with Bitcoin. Understanding the factors that influence the market price can help investors decide whether to invest in it, trade it, or continue watching its developments. Over the past couple of years, Bitcoin has gained dramatic momentum leading major institutions and even nations to adopt cryptocurrency as legal tender. Now, with this rising volatility, and other distinct parameters that are currently coming to light about BTC, investors are looking for a second layer of protection to avoid drastic financial losses and miss profit opportunities. Bitcoin proxy is a step further to providing this extra protection, and quite unsurprisingly, MicroStrategy is marching toward gaining a foothold to make itself the most successful Bitcoin proxy in the market. The Bitcoin proxy provides a second layer of protection to investors. It provides them with some additional features that they can use when gathering Bitcoin tokens. Besides, in some cases, a BTC proxy also provides some additional features that they can use when gathering BTC tokens. Starting from protecting their identity to helping gather tokens, a BTC proxy is the right way to go. Miners generally use a BTC proxy during mining tokens. Mining can get incredibly competitive and difficult, but using the right mining hardware and Bitcoin proxies might be the right combination to handle these complexities. But how is MicroStrategy enabling itself as the leader of Bitcoin proxies?  

MicroStrategy’s Formula to Become a Bitcoin Proxy

Quite recently, MicroStrategy, the biggest software developer in the tech industry, is now aiming to become a corporate Bitcoin vault and plans to sell up to US$500 million of stock to fund more purchases of the cryptocurrency. While filing a report on Friday last week, with the US Securities and Exchange Commission, the company revealed its stock offering, which will be used for distinct general purposes, including the acquirement of Bitcoin. Experts claim that MicroStrategy’s new initiative to become the Bitcoin proxy comes at the right time since it is the first productive initiative since Michael Saylor stepped down from CEO to executive chairman. The company is still focusing on buying Bitcoin tokens and fulfilling Saylor’s vision to establish the company as the primary and the largest crypto proxy. Over the past couple of days, Saylor has been using the money raised from the MSTR stock and bond offerings to purchase around 130,000 BTC tokens, which are worth over US$2 billion. Market analysts believe MicroStrategy is using its MSTR stock as a shortcut to gain Bitcoin and crypto exposure. The stock value of MSTR rose dramatically since the company first announced its new initiative, so it is quite obvious that if the price of Bitcoin surges, it will help hike the MSTR stock value. Initially, the company owned around 105,085 BTC tokens that are worth around US$5.23 billion when the cryptocurrency was valued at US$50,000, since then the company’s stock has gained rapid momentum, especially amid aggressive traders who have an appetite for riskier assets.  

Experts Believe MicroStrategy is Already a Successful Bitcoin Proxy

For some, MicroStrategy’s decision to provide crypto services is outright strange and controversial since it provides business intelligence, mobile software, and cloud-based services. But until now, it has served well for the company to advance towards this prospective, MicroStrategy has also hinted at moving towards servicing the Bitcoin industry, which will also help the company to gain new revenue streams and is a potential upside for investors. However, MicroStrategy is also facing intense competition from other companies that are also moving towards Bitcoin servicing, such as Morgan Stanley. Currently, MicroStrategy is focusing on value proposition and might definitely become the best Bitcoin proxy in the market.