As more companies pivot into crypto, who's buying bitcoin?
Public companies — especially Strategy (MSTR) — now hold over 3% of the bitcoin (BTC-USD) in circulation, according to Bernstein data.
Yahoo Finance senior reporter David Hollerith sits down with the Market Domination Overtime team to speak more on the latest crypto-buying trends from major companies.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
Public companies are increasing their Bitcoin exposure and now hold more than 3% of all bitcoins in circulation.
That's according to analysis from Bernstein Research.
They say imitation is this is flattering, and if this trend comes on the heels of the business software company strategies, crypto buying, of course.
To explain more about who's buying crypto and why, senior reporter David Hollerth is joining us.
That's everybody's trying to follow the Michael Saler playbook now.
Yeah, exactly.
I mean, uh, why wouldn't you seeing the rise in Bitcoin at this point and you know it's an interesting, uh, dynamic.
There's a premium premium between Bitcoins or excuse me, uh, strategies, uh.
Market cap and the amount of bitcoins it holds and other companies that have done this even this year have also seen that but not all of them have so in some sense the investors that are putting money into this or the companies themselves are kind of uh it's seemingly magically creating money so that's obviously an interesting dynamic from just an overall market's perspective and you know we're paying a lot of attention to the companies and we've seen a little bit of investors.
Limits to this trend last week GameStop and uh the president's namesake uh media company both uh reported doing these kind of strategies and uh or at least plans to, and their stocks dropped on the day so it's kind of an interesting trend to pay attention to, right?
And we've seen strategies sometimes on individual days drop when it says it's sort of raising capital if investors view that as dilute of whatever they're doing, but you mentioned that.
Premium, which is the thing that I guess other companies that are doing this are chasing, right?
They want to get that to trade even better than Bitcoin has.
What have you gotten in terms of explanations of why strategy trades at that premium to Bitcoin?
Yeah, that's a good question.
Um, I think it has to do with the fact that they take on a fair amount of leverage by issuing debt and then on top of that it's some sort of forward indication about the price of Bitcoin.
And how well, uh, strategy and Michael Saylor are going to continue to accumulate it in the future that's the best explanation I have but if you look at a financial or an economics textbook, you're not gonna get a clear answer like that.
So no, well, nor are you for Bitcoin in general, I suppose.
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