Still buying Bitcoin for MicroStrategy
When it comes to buying bitcoin, especially institutional purchases, Michael Saylor’s MicroStrategy always has its place in the discussion. Since Saylor himself is a well-known Bitcoin (BTC) evangelist, how could his business intelligence company lag behind in buying the best cryptocurrency.
In September 2022, MicroStrategy announced the sale of their shares to raise capital to buy more bitcoin. It was reported that the company was willing to raise US$500 million to fulfill the plan.
Few companies have such an aggressive attitude towards buying top cryptocurrency compared to MicroStrategy. The company said that for the purchase of bitcoin at that time, shareholders would be held responsible for managing the expenses.
Then in September, in its share sale documents, MicroStrategy released its balance sheet, which the company noted that its total bitcoin holdings consisted of 129,677 BTC. At that time, the total BTC holdings were valued at USD 3.78 billion according to the modern cost of bitcoin.
After the share sale, the $500 million fund raised was expected to buy around 22,500 bitcoins given the price at the time. This would end up with an increase of about 17% in the bitcoin holdings at that time.
MicroStrategy BTC Holdings Crossed the 130K Mark!
After a few days, MicroStrategy reported buying 301 bitcoins worth 6 million, bringing its bitcoin holdings to cross 130K BTC in total.
MicroStrategy has one of its prominently stated corporate strategies for buying bitcoin. It goes hand in hand with the main business of being a business analytics firm. This is because the firm follows the notion of executive chairman and co-founder Michael Saylor. He thinks of bitcoin as one of the decisive and effective hedging options against sky-high inflation. As the crypto market will mature in the future, the leading cryptocurrency will also get stronger with time and that will reflect on its value.
During its second-quarter earnings call in August, Saylor said the ongoing wave of crypto rationalization, along with regulation and innovation, could prove healthy for the nascent industry. It may improve with time in the medium term as well as the long term.
Is MicroStrategy on an Extreme?
To put it bluntly, if bitcoin is going to see significant growth in the coming times, then MicroStrategy will also enjoy its share of success given its huge investment in the major crypto-asset. However, the year has been quite stressful for the crypto market – both cryptocurrencies and crypto investors.
Since crypto prices were at fairly low levels, it would only be good from a buyer’s perspective. So if the bitcoin strategy of Michael Saylor and MicroStrategy has any chance of working in the future, the year could turn out to be the time of massive wealth building. If, however, it goes south, it can be remembered as one of the most costly mistakes.
Steve Anderson is an Australian crypto enthusiast. He has been a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralization, understanding the true potential of the blockchain.
