MicroStrategy now owns nearly 109.000 BTC, making it the largest institutional investor in Bitcoin and one of the largest cryptocurrency whales in the industry.
Michael Saylor, CEO of MicroStrategy, announced via his Twitter account that his business intelligence company added another 3.907 BTC to its balance sheets recently, further strengthening the confidence it has placed in the cryptocurrency industry leader since last year.
In August 2020, Saylor reported that MicroStrategy would enter the bitcoin investment space, transforming 50% of its cash reserves at the time into the cryptocurrency. Thus, by mid-month, the company had acquired a total of 21.454 bitcoins with an investment of $250 million, making Bitcoin its main reserve asset; at that time, the price of BTC on the market was around $11.500 per unit.
Saylor, who also maintains personal investments in Bitcoin (BTC), said that he had studied the cryptocurrency in depth and that he was confident in its value proposition and its potential for future appreciation, so MicroStrategy's bet on bitcoin, as a store of value and protection against inflation, would be large. Likewise, the company's CEO pointed out that the investment in bitcoins would help it mitigate the risks of inflation and devaluation in its corporate treasury, driven mainly by the crisis accelerated by the Covid pandemic and by the economic measures implemented by governments.
To date, the publicly traded US company holds a total of 108.992 BTC on its balance sheet, worth approximately $5.235 billion, according to the BTC value at the time of this writing. It should be noted that the total investment MicroStrategy has made to acquire the BTC has been $2.918 billion, as Saylor reported in his tweet.
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$177 million in Bitcoin in QXNUMX
Although MicroStrategy took a brief pause on its Bitcoin investments, the recent acquisition of BTC, which is part of its capital allocation strategy to remove excess cash from its reserves and deposit it into an asset that can maximize its value in the long term, underlines its interest and conviction towards the cryptocurrency. The company has stuck to this capital allocation strategy since last year and has made about 6 investments in the cryptocurrency to date.
In her presentation In a filing with the United States Securities and Exchange Commission (SEC), MicroStrategy stated that the $177 million investment in BTC corresponds to the third quarter of the year, and that each BTC was acquired at an average price of $45.294, including fees and expenses. On the other hand, the company states that the bitcoins acquired so far were purchased at an average price of $26.769 per BTC; therefore, based on the current price of the cryptocurrency, the company is reflecting profits on its balance sheets of up to 70% of its investment on average.
MicroStrategy, Saylor and Bitcoin
Michael Saylor has emerged as one of the biggest proponents of Bitcoin. The MicroStrategy CEO has repeatedly expressed his strong belief in the industry-leading cryptocurrency, and has explained why he will continue to invest in it. In fact, earlier this month, Saylor spoke about continuing to add more bitcoins to his balance sheet and pushing the cryptocurrency to the masses; even educating government and regulators about the potential of the cryptocurrency and its underlying technology. blockchain.
Saylor believes that the global acceptance, brand recognition, ecosystem vitality, network dominance, architectural resilience, technical utility, and community spirit surrounding Bitcoin are compelling factors for investing in the cryptocurrency, and he is confident that these elements demonstrate BTC’s superiority as an investment asset compared to other assets on the market. He therefore recommends the cryptocurrency to investors, both individual and institutional, who are looking for a store of value with great long-term potential.
“Bitcoin is digital gold: harder, stronger, faster and smarter than any money that has preceded it”, said Saylor a year ago.
In addition to solidifying its BTC investments, MicroStrategy also announced that it would use the cryptocurrency to pay its executives' fees. Saylor, for his part, has held several events, such as “Bitcoin for business”, to promote the mass adoption of this financial innovation.
At the close of this edition, BTC is listed on the markets with a value of $48.200 per unit and its market capitalization exceeds $906.000 billion.
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Continue reading: MicroStrategy advances its crypto strategy and pays its executives with bitcoin
