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Here’s Why Other Companies Aren’t Buying Bitcoin Like MicroStrategy

It’s hard to ignore MicroStrategy on the best of days, but in recent months, the company has been making crypto news headlines thanks to its high-profile Bitcoin purchases. Considering the all-time highs Bitcoin saw this summer and then the recent dive in prices, one might wonder why non-crypto companies haven’t followed MicroStrategy’s lead.

There could be several reasons for this, as a report by Arcane Research uncovered.

Stay pressed

Calling MicroStrategy’s Bitcoin tactics “aggressive,” the report noted that at the last count, the company had 122,480 BTC. What’s more, each one cost the company an average of $29,860.

So, why aren’t other businesses feeling inspired? The report observed,

“However, since Q1, 2021, no new companies from outside the crypto ecosystem have publicly announced any Bitcoin purchases. Several reasons could explain the non-existent news on new companies adding bitcoin to their treasuries.”

According to Arcane Research, causes for this included the risk of bad press, possible backlash from the public due to energy consumption worries, and the fear of being linked to MicroStrategy CEO Michael Saylor.

It’s hard to ignore MicroStrategy on the best of days, but in recent months, the company has been making crypto news headlines thanks to its high-profile Bitcoin purchases. Considering the all-time highs Bitcoin saw this summer and then the recent dive in prices, one might wonder why non-crypto companies haven’t followed MicroStrategy’s lead.

There could be several reasons for this, as a report by Arcane Research uncovered.

Stay pressed

Calling MicroStrategy’s Bitcoin tactics “aggressive,” the report noted that at the last count, the company had 122,480 BTC. What’s more, each one cost the company an average of $29,860.

So, why aren’t other businesses feeling inspired? The report observed,

“However, since Q1, 2021, no new companies from outside the crypto ecosystem have publicly announced any Bitcoin purchases. Several reasons could explain the non-existent news on new companies adding bitcoin to their treasuries.”

According to Arcane Research, causes for this included the risk of bad press, possible backlash from the public due to energy consumption worries, and the fear of being linked to MicroStrategy CEO Michael Saylor.

The research also pointed out that changing a corporate treasury strategy was unorthodox.

Let’s go whale watching

During an interview, Saylor addressed the question of non-crypto companies entering the sector. He suggested that large banking institutions giving clients exposure to Bitcoin might lead to the collapse of other assets. Saylor said,

“…do I mind if JP Morgan starts custodying 100 billion dollars of Bitcoin? They’ll pick up the phone, call their clients, all their clients will start buying Bitcoin, and the price of Bitcoin will go to the roof, and it will demonetize 100 trillion dollars of other assets.”

But apart from this, some experts and analysts are worried about the risk of MicroStrategy becoming a powerful crypto whale and thus controlling the market. The company’s rapidly swelling Bitcoin holdings further raise the question of whether Bitcoin can be called a decentralized asset when more of it is leaving crypto exchanges and moving into corporate treasuries instead.

Does it make cents?

All said and done, a Bitcoin investor might want to know how MicroStrategy is faring after the December price crash.

Arcane Research’s report concluded,

“Michael Saylor’s vocal and eccentric behavior might also contribute to distancing more conservative corporate CEO’s from even considering the Bitcoin treasury strategy. Nevertheless, for MicroStrategy, this strategy has been very fruitful so far, as the company is currently $2.2 billion in profit on its Bitcoin holdings.”

Source: ambcrypto.com

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About Skyhigh.Vip  

Skyhigh.Vip is a global institutional investor with a vast interest in Arts / Construction / Education / Business Services / E-Sports and various other growth industries.  

Several of its popular portfolios include GO Chambers which is the world’s largest business chamber listing provider with over 30,000 active chambers as its members.  

Flexgigzz is the Asia leading marketplace for freelancers service and together with SOHO Learning Hub which is an online platform for short courses and both of them aims to be the number one provider in Asia. For growth industries such as E-Sport Authority which is dedicated to providing independent media coverage to all E-Sport News related from around the world and for the art world, there is Atelier Auction which is an investable art auctioneer and being in the art scene for decades.

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