It looks like it’s gift time now, and Bitcoin is doing just that, at least for its founders like MicroStrategy, Galaxy Digital, Square, and Marathon Patent Group, who arrived at BTC very early.

In this regard, PayPal announced on February 4 that fourth-quarter 2020 earnings increased by 200% compared to the previous business cycle, noting two new offerings, namely Cryptocurrency Tool and Buy Now Pay. Later ” – as the most important driving force behind its explosive growth.

And while PayPal has not revealed exactly how much growth the company has driven in Bitcoin (BTC), the fact that the payment giant wants to introduce a new cryptocurrency exchange tool to its 29 million affiliates. Sellers around the world in the near future will simply demonstrate the company’s belief in their cryptocurrency vision.

If that wasn’t enough, CEO Dan Schulman said in a recent interview that the aforementioned development was just a “small sign” of things to come, and that this is just “the beginning of a comprehensive roadmap on cryptocurrencies, blockchains, and digital currencies” to PayPal.

This indicates that companies in the traditional economic sphere that actively invest in cryptocurrencies exhibit monetary trends that are significantly different from their contemporary companies. That way, Tesla’s perception of the stock market could now change drastically after the company recently entered the cryptocurrency market with the purchase of $ 1.5 billion BTC.

The ratio between the company’s capital and Bitcoin assets
There is no denying that an increasing number of traditional finance companies are entering the crypto sector. For example, according to NYDIG CEO Ross Stevens, his crypto asset manager already has enough institutional purchase orders to exceed $ 25 billion in bitcoin assets by the end of 2021.

Based on this data, Sam Bankman Fred, founder and CEO of quantum cryptocurrency trading company Alameda Research, which currently manages $ 2.5 billion in assets, told Cointelegraph that the bonds between the company’s shares are growing in line with the company’s actions. To buy BTC. Totally real by adding:

“Investors are partly happy with the opportunity to buy shares in cryptocurrency affiliates in the open markets. The second part is that the price of BTC has gone up, and if the company owns BTC, it should go up as well.”
Justin Barlow, analyst at The Tie, a provider of digital media data for digital assets, believes that the ongoing rally in shares of some companies has a lot to do with BTC’s acquisition strategies:

“As a guide, all you need to do is look at the companies’ market value before and after the BTC announcement,” he added, citing examples from MicroStrategy, Square (NYSE: SQ) and Marathon Patent Group (NASDAQ: MARA). That has grown by over 50% since their respective ads.

He also expressed the view that it is safe to assume that an increasing number of companies will seek to take advantage of this continuing trend, especially as owning “BTC reserves” has become increasingly popular among companies, and the demand for an increase in cryptocurrency is also growing at a rapid pace for both individual investors. And institutions.

Tesla share price hikes
Everyone might have heard already, it was recently announced that automaker Tesla has invested heavily in cryptocurrency, raising $ 1.5 billion in BTC through various funds, increasing the coin’s value by $ 3,000 in a matter of minutes.

Not only that, Tesla – one of the world’s 10 largest companies by market value and a member of the S&P 500 – will now also accept payments for its products in BTC, potentially triggering a unique wave of corporate and institutional ownership of Bitcoin. In this regard, Shiraz Ahmed, head of business development at the Crypto Valley Association, a blockchain ecosystem supported by the Swiss government, told Cointelegraph:

Tesla announced that it had bought $ 1.5 billion in bitcoin, and the share price rose by nearly 3%. BTC has a direct impact on both the digital currency market and the traditional markets. Investors see these large companies as pioneers in this new wave of digitization, and thus a good opportunity for long-term investments. ”
On February 8th, MicroStrategy’s shares have increased by + 670% since the company made its first Bitcoin investment. Not only that, the stock correlation to BTC has also increased + 300% over the same time period.

Source: CoinTelegraph