Software intelligence firm MicroStrategy made one of the boldest investment moves of the year when it invested $250 million into bitcoin, buying about 0.1 percent of the total supply in August. Its CEO, Michael Saylor, has doubled down on the move in countless public comments and earlier this month, the firm raised $650 by offering convertible senior notes with plans to buy even more BTC.
But these moves cannot be made by Saylor alone. The company’s board and investors must also see the value in a transition to bitcoin. But who are these bullish investors? How did Saylor convince them to opt into Plan B? And what does it mean for there to be a cadre of Bitcoin enthusiasts in these institutional seats?
Who Are The Investors Backing Saylor’s Big Play?
Russell Investment is the eight-largest shareholder in MicroStrategy, owning approximately 2 percent of total shares. It has recently increased this position by over 70 percent, more so than any other shareholder. It has bullishly blogged on BTC since 2018, with such quotes as: “While many are questioning Bitcoin’s foundations, perhaps even more importantly, Bitcoin is questioning the foundations of the central banks.”
Renaissance Tech (RenTech) is the tenth-largest shareholder in the company. It has increased its position by four-times since June, which coincidentally, is when it also received internal approval to begin trading bitcoin futures.
This approval was around the time when MicroStrategy publicly stated that it was considering investing in alternative assets. At this point, we can infer that RenTech knew that bitcoin was on the table and was onboard with the idea.
My personal favorite? The Citron Fund. It was publicly bearish on BTC for three years before reversing its position this Fall, saying in an investment memo that MicroStrategy was the best Bitcoin exposure available on the public market today.
Citron bought up shares in MicroStrategy and stated a new valuation of $700 per share. This…