Bitcoin Buying Plans Are Supercharging Stocks. Is This a Michael Saylor Redux — or Another 'Long Island Iced Tea' Fad?Following MicroStrategy's successful bitcoin buying strategy, many companies, some microcaps and unrelated to crypto, started announcing similar steps.
What does the ragtag group including a fitness equipment maker, biopharmaceutical company and producer of battery materials have in common?As the cryptocurrency skyrockets to unheard-of levels this month, at least 12 publicly traded companies that previously had nothing to do with crypto announced they plan to buy bitcoin
"The recent bitcoin boom, coupled with MicroStrategy's 500+% stock surge in 2024, has inspired a wave of companies — particularly microcaps — to announce bitcoin buying strategies," said Youwei Yang, chief economist at BIT Mining . But who can blame them for trying? Investors who invested early in MicroStrategy are getting ridiculously rich, and even recent investors are making easy money. Saylor largely funds MicroStrategy's bitcoin purchases with money raised from stock and debt sales. The copycats might gain access to capital markets that they wouldn't otherwise have had.
"For BTC proponents, the expectation is that a combination of macro factors such as inflation and new-found regulatory friendliness will spur further examples of the asset being placed on corporate balance sheets," Toronto-based crypto platform FRNT Financial said in a report..
The most famous example of this was little-known beverage maker Long Island Iced Tea renaming itself Long Blockchain, with an explosive result, at least initially: Its share price nearly tripled in a single day after the crypto-rechristening. The gains didn't stick and the stock was later delisted by Nasdaq. initiatives — trying to hitch their shares to crypto and related hype.
المملكة العربية السعودية أحدث الأخبار, المملكة العربية السعودية عناوين
Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.
مصدر: Utoday_en - 🏆 295. / 63 اقرأ أكثر »