U.S. and Companies Invest Big in Bitcoin, Pushing Demand Higher

published: November 13, 2024 at 09:45 PM GST

updated: November 13, 2024 at 08:36 PM

2 mins readNews

• The U.S. government may secure Bitcoin with a major new investment strategy.
• MicroStrategy’s expanded Bitcoin investment could inspire other corporate investments.
• Microsoft’s shareholders now push the company toward Bitcoin investments for future growth.

The United States government and major corporations may soon push Bitcoin higher as key players increase their investments. With Republicans now leading both chambers of Congress, a proposed federal Bitcoin purchase program could become reality. This initiative, which has support from some Democrats, aims to make the U.S. government a top Bitcoin holder and drive market demand worldwide.

Federal Bitcoin Proposal Gains Momentum

As Republicans and some Democrats back the Bitcoin purchase program, its chances of passing grow. This program intends to acquire over five percent of Bitcoin’s entire supply and hold it for two decades. A long-term hold on this scale would likely increase Bitcoin’s stability and draw interest from other countries that might follow suit.

What’s UP with Bitcoin recently?

Two things:

First, Trump’s win, PLUS the Republicans winning both the Senate and the House (just official yesterday), PLUS some support from a handful of Democrats now, means that the U.S. “Bitcoin Purchase Program” seems likely to pass next… pic.twitter.com/TSJNgXMliu— Jeremy Hogan (@attorneyjeremy1) November 12, 2024

With its backing from multiple sides of the political spectrum, the U.S. government’s initiative could set a global trend for Bitcoin adoption. Many investors anticipate that Bitcoin’s price could surge if governments increasingly adopt similar strategies, creating higher demand and pushing other global players to enter the market.

MicroStrategy Expands Bitcoin Holdings Further

MicroStrategy, an enterprise software company, has raised its Bitcoin holdings with its largest purchase since 2020. Between October 31 and November 10, the company acquired 27,200 BTC, totaling around $2.03 billion. This tactical approach  came just after the elections and aligns with the firm’s long-term investment plan.

Originally, MicroStrategy used cash to buy Bitcoin but has since shifted to shares sales and convertible debt to expand purchases. This investment method has paid off as the company’s stock price soared by more than 2,500 percent since 2020, surpassing gains from many major U.S. stocks. This consistent buying shows its strong belief in Bitcoin’s prospective potential.

Microsoft Faces Shareholder Demand for BitcoinAs corporations turn to BTC, Microsoft now faces increasing pressure from owners pushing for a crypto investment strategy. The December 10 annual shareholder meeting will discuss a proposal urging Microsoft to add Bitcoin to its portfolio as a hedge against inflation. Although the company’s board has opposed the measure, the request reflects growing interest in the token within corporate boardrooms. With MicroStrategy’s success, organizations like Microsoft could face rising calls from shareholders to invest in Bitcoin and adopt its benefits.