At 19:23 UTC on Wednesday (February 17), financial and investing advice company “The Motley Fool” tweeted that it had decided to invest $5 million in Bitcoin and explained why.
Ten minutes minutes later, the Bitcoin price went above the $52,000 level before reaching $52,400 (at 20:22 UTC), which is the new all-time high.
According to data by CryptoCompare, currently (as of 08:43 UTC on February 17), BTC-USD is trading around $52,413, which means that Bitcoin’s market cap stands roughly at $976.5 billion. Bitcoin is up 7.41% in the past 24-hour period and up 80.90% in the year-to-date (YTD) period.
So, what is the reason that The Motley fool is giving Bitcoin this huge vote of confidence?
The company says there are three reasons:
- “We believe it will store value more effectively than gold over the long term.”
- “We believe it may become a medium for transactions, as/if pricing stabilizes in the decade ahead.”
- “We believe it can act as a productive hedge against inflation.”
It went on to say that it believes “Bitcoin can play a role within a diversified portfolio built with a focus on the long term”and that it plans to “hold this Bitcoin investment for many years.”
In an article published on its website at 19:20 UTC, The Motley Fool said that it had decided to recommend a cryptocurrency — Bitcoin — as part of its “real-money 10X portfolio”, which is “focused on finding investment opportunities with potential to increase 10x in value within the next five, 10, 15 years.” Bitcoin will be “a core holding” in its 10X portfolio.
The firm then said that it will also be separately buying Bitcoin for its balance sheet:
“We will not only wait for all of our members in 10X to be able to buy before we buy our 10X allocation, but we’re also giving all Motley Fool members a chance to review this guidance before we separately stake $5 million of The Motley Fool’s own capital.“
It’s been a pretty great day for Bitcoin HODLers. First, the Bitcoin price broke $51,000 (on Bitstamp) at 07:52 UTC (on February 17). Then, MicroStrategy announced around 12:35 UTC that it had increased the size of its latest offering of convertible senior notes (due 2027) to $900 million (from the original $600 million that was mentioned in Tuesday’s announcement). And now, we get one of the most popular investing advice sites in the world following the examples of companies such as MicroStrategy, Square, MassMutual, and Tesla and buying Bitcoin as an inflation hedge that has the chance to increase 10x in value within the next 5-15 years.
One happy thought in the minds of many BTC HODLers is now likely to be: “if the Bitcoin price can go from $20K to $52K in just two months, what is going to happen once ‘real’ FOMO appears?”
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.