MicroStrategy’s Bitcoin vault exceeds 80% of the cash of non-financial companies in the S&P 500


MicroStrategy’s massive Bitcoin value (Bitcoin) Holds more than most S&P 500 index companies hold in their cash treasury.

Enterprise software company listed on NASDAQ Buy Another 5,050 bitcoins were purchased at a price of approximately US$242.9 million, raising the value of its 114,042 BTC assets to nearly US$5.3 billion.According to the data, this is higher than 80% of the number of non-financial S&P 500 companies holding in their cash pools Compile Bloomberg.

Increase in cash outlays between companies

MicroStrategy will buy Bitcoin as its official corporate strategy for 2020, and its famous CEO Michael Saylor called this move Protect against potential depreciation of the U.S. dollarCompanies such as Tesla and Square later copied the strategy of replacing some of their cash reserves with Bitcoin.

On the other hand, companies with lower risk appetite continue to increase their cash holdings.For example, in the second quarter, non-financial companies in the S&P 500 promote Due to the escalating uncertainty caused by the COVID-19 pandemic, their national debt has fallen by 12% compared to a year ago.

Cash holdings of non-financial S&P 500 companies in recent quarters.Source: Bloomberg

Some of these companies-including General Electric, Ford and Boeing-began to spend cash in the third quarter. For example, in July, non-financial S&P 500 companies cut their dollar reserves by $30 billion, or 2%, from a year ago.

at the same time, A company like Amazon And Alphabet (Google’s parent company) is still accumulating cash, but has hardly changed overall dollar spending.Total cash held by U.S. companies fall Bloomberg data shows that as they acquired new businesses, repurchased stocks and increased dividends, it increased from US$1.55 trillion to US$1.52 trillion.

Overall, the downward trend in cash holdings indicates that listed companies have become more comfortable with spending money due to expectations that the COVID-19 pandemic is almost over.

MSTR provides de facto Bitcoin risk exposure

MicroStrategy shares In the past 12 months, Bitcoin has soared by nearly 359%, and in sync with Bitcoin, its value has soared by 314% in the same period.

As MSTR appreciates faster than Bitcoin’s price growth, some analysts believe that holding stocks makes it easier for investors to access the benchmark cryptocurrency market through traditional infrastructure.

MicroStrategy and Bitcoin and Nasdaq.Source: Econometrics

“It’s no secret that MSTR’s valuation is higher than NAV [net asset value] The tokens I currently own, I think investors are not buying it for the benefit of traditional businesses,” Said Analyst Kingdom Capital.

“this [clearest] The reason I can see is that it is one of the few companies with a large market capitalization in the BTC field. “

For example, Amplify Transformation Data Sharing ETF, which manages a US$1.2 billion investment get The exposure rate in MSTR after being cold is 6.5% Grayscale Bitcoin Trust, The leading Bitcoin investment tool in the United States, is traded over-the-counter, which limits its access to funds from certain funds and exchange-traded funds.

Similarly, Siren Nasdaq NexGen Economy ETF holds MSTR but not GBTC.

related: MicroStrategy stock is bullish as MSTR becomes a Bitcoin “agent” for institutional investors

Therefore, MicroStrategy stock and Bitcoin prices Expected trend synchronization, Unless there are more crypto stocks available. Kingdom Capital participated in:

“It seems that there are better tools for investors to buy BTC stocks, and as they become more accessible, I expect some ETFs to reduce their MSTR exposure.”

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