Crypto mining firm Vortex Brands will start buying MicroStrategy stocks as part of a fresh investment strategy.
According to the firm, the move is designed to leverage MicroStrategy’s Bitcoin-focused business model and capitalise on its potential growth.
According to an August 28 press release, the firm has acquired an initial ten shares of MicroStrategy and intends to buy at least that number each month, with quarterly reports on its holdings.
Vortex Brands CEO Todd Higley stated that incorporating MicroStrategy stock into the firm’s portfolio will enable it to leverage the arbitrage strategy MicroStrategy employs between the corporate public markets and the value of Bitcoin.
Higley also claimed this move aligns with the company’s optimistic outlook for Bitcoin and belief in hard assets, including select digital assets, as the preferred investments and business activities in today’s post-low-inflation environment.
Vortex claimed that its rationale for adding MicroStrategy stock to its balance sheet and its support for Bitcoin is informed by MicroStrategy’s “Bitcoin for Corporations” initiative, which provides valuable insights from industry leaders on integrating Bitcoin into business strategies.
The press release also revealed that Vortex is preparing to launch a new division focused on diversifying its revenue streams and bolstering its Bitcoin mining operations to boost its cryptocurrency holdings as part of this new investment strategy.
An increasing number of corporate organizations and businesses are embracing Bitcoin as an important financial asset, and they are using the MicroStrategy stock as leverage to gain Bitcoin exposure. ETF issuer Defiance recently launched MSTX, the first single-stock long-leveraged ETF for MicroStrategy. This ETF, announced on August 15, aims to provide 175% daily long exposure to MicroStrategy, a company known for its Bitcoin holdings.
Sylvia Jablonski, CEO of Defiance ETFs, mentioned that MSTX offers investors a unique opportunity to increase their leveraged exposure to Bitcoin through MicroStrategy’s stock, emphasizing its higher beta relative to Bitcoin.
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