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Bitcoin crosses 50k as MicroStrategy announces $600M new investment

Photo of: Nathan VDH
by Nathan VDH

The technical resistance of the 50,000 dollars, a real wall to overcome? It is now a done deal. Bitcoin takes full advantage of the support of cryptocurrencies by large companies such as Mastercard.

In the world of cryptocurrencies, one day’s analyses can quickly become obsolete or confirmed. According to the open position of Bitcoin options, institutional traders were betting on passing the $50K hurdle by the end of February.

This is now a reality. Already on February 16, the BTC exceeded this technical resistance. But only temporarily. At 9:00 a.m. on February 17, Bitcoin was again above $50,000, up 3.5%.

Several major announcements on the market made such a scenario more credible. Tesla decided to invest $1.5 billion in cash in the first of the cryptocurrencies. Mastercard plans to host crypto natively on its network.

In the banking world, institutions are actively preparing to offer crypto-asset management services. This is notably the case in the United States for BNY Mellon Bank. Its objective: a launch as early as 2021.

Even though Uber’s CEO rules out any investment in Bitcoin because it is too speculative, he is in favor of its use as a means of payment. But perhaps it was MicroStrategy’s latest announcement that gave the impetus to break the $50K barrier.

The company is planning to raise additional funds from investors to increase its capital in TCM. The publisher announces that it will invest an additional $600 million towards the asset.

The crazy gamble of its CEO, Michael Saylor, has so far proved to be a great success. MicroStrategy now owns 70,784 Bitcoins, worth over $3.5 billion. And the financial markets are clearly appreciating this strategy.

Since August, and its debut in Bitcoin, the company’s stock market valuation has exploded. It was less than $2 billion at the time. Now it’s over $10 billion. And after the announcement of this new investment, the stock was still gaining 5%.