MicroStrategy was not happy with “just” $ 425 million in Bitcoins, it wanted more. It was only when the price dropped below 19K that he bought another 50 BTC.
MicroStrategy: bitcoin hodler at the forefront of the rally
Anyone who thinks that Michael Saylor, CEO of MicroStrategy, invested in Bitcoin to make a quick profit is completely wrong. MicroStrategy is not only an optimistic BTC Hodler. It is better to define it as a BTC storage device.
A document released on December 4 by the SEC States that MicroStrategy made another $ 50 million payment to further increase its bitcoin reserves. The company said it paid about $ 19,427 for the asset, totaling 2,574 BTC.
It takes a lot of courage – and optimism-to purchase such a large number of coins at a price close to ATH. After this purchase, MicroStrategy will own 40,824 BTC, which will total almost half a billion dollars in cryptocurrency.
MicroStrategy initially purchased the asset in August 2020. At that time, it announced the purchase of 21,454 BTC worth $ 250 million. A second purchase of 21,454 Bitcoins worth $ 250 million followed in mid-September.
And anyone who thinks it was a bad idea is definitely not following the company’s stock dynamics. The announcement of the purchase of the Cue ball may have served to catapult the company’s valuation from an average of $ 120 per share, to a peak of $ 360 a few days ago. Currently, each share of the company is worth $ 328.
Thus, according to Bitcoin Treasuries, MicroStrategy is consolidating as a publicly traded company with a large amount of capital invested in cryptocurrencies. The company has more than twice as many Bitcoins as its closest competitor, Galaxy Holdings, which owns 16,651 BTC. It also has 10 times more BTC than Square, which is third on the list with 4,709 BTC.
The CEO of MicroStrategy confirmed the news on his social media accounts without any further comments or opinions:
“MicroStrategy purchased approximately 2,574 Bitcoins worth $ 50.0 million. Now we have about 40,824 BTC”.
And with this new $ 50 million investment, it’s clear that he wants more. But the company doesn’t just buy tokens: it tries to participate in the growth of the blockchain through investments and symbolic actions. In late October, MicroStrategy installed its first bitcoin node.
MicroStrategy’s policy, as outlined in various documents and according to its CEO, is a corporate decision to protect its cash reserves from dollar inflation. The company determined that by keeping a portion of their profits in dollars, they would have an interest loss of more than 15%. So they decided to place these assets in BTC because of their safe haven characteristics.
MicroStrategy promotes crypto adoption
In addition to being one of the companies that accepted Bitcoin at the institutional level, MicroStrategy also contributes to the development of the cryptocurrency. In addition to launching its own bitcoin node, the company has unveiled its buying strategy so that other companies can follow suit.
MicroStrategy was the first in a series of institutional purchases that raised the cryptocurrency to its current price. The CEO of MicroStrategy said that he personally owns 17,732 BTC. Saylor bought his coins at an average price of $ 9,882.