MicroStrategy caused a stir in the past with its multi-billion-dollar Bitcoin (BTC) investments. It has recently been announced that the American software company wanted to buy more BTC through a $500 million bond issue.
This plan has now been put into practice since the company headed by Michael Saylor bought 13,005 BTC. Overall, this investment is equivalent to $489 million.
MicroStrategy Now Owns over 100,000 BTC
Without having publicly stated it, it was probably one of the goals of Michael Saylor and his company to exceed the magical limit of 100,000 BTC. As it has now become known, the software giant bought another 13,0005 BTC, thereby achieving this goal. The company made the investment at a time when Bitcoin was in a difficult market situation. The company, which is listed on the Nasdaq, has been speculating for some time on an increase in the value of the largest cryptocurrency by market cap.
MicroStrategy’s wallets currently contain BTC with a total value of approximately $2.75 billion. Based in Tysons Corner, Virginia, the company is by far the number 1 public company that has invested in BTC. Tesla, at number 2 on this list, doesn’t even own half of this amount of BTC. Another well-known company Square Inc is in 5th place with just over 8,000 BTC. According to MicroStrategy, it paid an average price of $37,617 per BTC. The news couldn’t have a positive influence on the price, because Bitcoin is currently trading below the average price mentioned.
Conclusion: MicroStrategy Has Taken a Risky Step
After issuing corporate bonds in the hundreds of millions, MicroStrategy is investing nearly half a billion US dollars in Bitcoin. Undoubtedly, the company is making a risky bet. Michael Saylor has now invested nearly $3 billion of his company’s cash reserves in BTC.
Michael Saylor has built the company from the ground up and in case of a BTC crash, he should have thought ahead of all the scenarios. Nevertheless, the ‘All in Bitcoin’ strategy is associated with an unclear further development.
In the near future or in the distant future, we should have clarity as to whether the chosen strategy was successful. Have a great weekend!