Could Bitcoin Be Nvidia’s Next Big Investment, Like MicroStrategy?

Main Takeaways:

Bitcoin as a large-scale investor asset for Nvidia is clearly justified by two key points. If this happens, it will make the brand look even more modern and future-focused.

People on crypto Twitter are talking a lot, guessing that Nvidia might be planning to buy some Bitcoin [BTC] for its company funds.

According to AMBCrypto, this idea is not unrealistic. In fact, big-picture economic trends and market conditions suggest it could be a smart way to spread financial risk and protect against the falling value of regular money.

If this really happens, it could strongly boost Bitcoin’s price. It might also encourage more big investors to enter the market.

Bitcoin’s Smart Fit in Nvidia’s Treasury Strategy

The U.S. network is just midway into Trump’s re-election campaign, and already, top public company stocks have dropped by above 20% in Q1. Nvidia, listed as one of the top three companies with a market value of $2.72 trillion, is no different.

At the time of reporting, its stock’s worth dropped 24.44% from its Q1 beginning of $138. Yet, this could only be the start of a big drop.

As a major tech company heavily involved in Artificial Intelligence (AI), Nvidia is right in the middle of the U.S.-China trade conflict. This puts the company at risk of facing political problems that might negatively affect its stock price.

In addition, as inflation reduces the value of the U.S. dollar, Nvidia may experience higher costs, especially for parts and shipping.

According to these macroeconomic challenges, it is not a shock that most of the share-listed companies are shifting to Bitcoin to protect themselves from these risks.

In reality, Metaplanet currently released 3.6 billion JPY in 0% standard bonds to purchase additional Bitcoin. It is making itself a part of the increasing number of companies that are adding cryptocurrency to their company assets.

The Evidence Is Clear in the Numbers

MicroStrategy’s [MSTR] stock has observed a remarkable 3,000% return in the last five years, mainly influenced by its Bitcoin risk. It has dramatically exceeded the performance of most tech stocks. This has resulted in an annual growth rate of 600%.

When compared, Nvidia’s stock reported returns of “only” 916%. Although it is far behind MicroStrategy.

This stark divergence mentioned the outsized effect of Bitcoin on MicroStrategy’s results.

At the time of reporting, Bitcoin’s value rose from $10,000 in 2020 to $96,172, indicating a Year-To-Date price surge of 715%. This strengthens its position as an important factor in helping companies like MicroStrategy boost their portfolio returns.

With results like these, it’s easy to see why other major companies might join in soon. And it seems like Nvidia is the next one ready to take that big step!

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