Software company MicroStrategy is steadily buying up Bitcoin, here's what it means for the cryptocurrency

American investors are currently rallying behind a particular stock of a software company, which has heavily invested into Bitcoin. This is being seen as a proxy purchase into cryptocurrency through the US stock market as the value of Bitcoin would ultimately determine the price of the stock of the company.

Are MicroStrategy stocks a good investment?

MicroStrategy, the stock in question, is primarily a software-based company's efforts into building up a Crypto-Stock Market ecosystem, and has avidly turned itself into a Bitcoin buying machine in 2020 and reportedly holds around $38 billion worth of tokens, according to a Wall Street Journal report. Individual investors are also seeing this as an opportunity of indirectly investing into the cryptocurrency market while avoiding the risk of massive volatility.

Bitcoin spiked, MicroStrategy surged faster

Even the company's founder, Michael Saylor has repeatedly boasted about the company's volatility, and it is yet to be seen how things end up in the longer run. Since Election Day, MicroStrategy stock prices have surged faster than Bitcoin prices, which itself is a surprising factor as the cryptocurrency value has increased by more than 40% since November 5.

FAQs:

Are the US stock markets booming?
Yes, the US stock markets are currently booming with the Dow Jones Industrial Average having risen sharply in recent days.

Have Bitcoin prices increased in November?
Yes, the cryptocurrency value for Bitcoin has increased by more than 40% since November 5, the day the US Presidential elections happened.