MicroStrategy on a Bitcoin Buying Spree: Buys $10M Worth of BTC

MicroStrategy on a Bitcoin buying spree: buys $10M worth of BTC.

TL;DR Breakdown

  • Microstrategy buys $10 million worth of Bitcoin. 
  • The firm’s CEO says that Bitcoin would make for a better safe-haven than gold.

There appears to be no stopping for Microstrategy as the firm has announced a recent purchase of $10 million worth of Bitcoin. This translates to around 295 units of the leading crypto asset. 

MicroStrategy’s Bitcoin Warchest Now worth over a billion-dollar 

One of the revelations of the crypto industry in 2020 was MicroStrategy went on a Bitcoin buying spree all through the year. The firm was one of the top institutional investors in the industry as it made other bulk purchases of the crypto asset. Currently, Microstrategy alone has over 70,000 units of BTC, which is worth well over $1 billion.

In one instance, it made a $650 million acquisition after it had earlier purchased 21,000 BTC for $250 million. And around the end of last year, its company also purchased additional 2000 BTCs taking it high up the ranking among the highest holders of the crypto asset.

However, MicroStrategy lags behind Grayscale’s investment in Bitcoin. The investment company is said to have over 3% of all units of the leading cryptocurrency. 

The firm recognizes Bitcoin as a store of value.

According to Micheal Saylor, the firm’s CEO, he says that Bitcoin would make for a better safe-haven than gold and clamors for the asset to replace the metal as a non-sovereign store of wealth. He went on to add that until his firm found a better option for Bitcoin, they were going to continue investing in the crypto asset.

Phone Le, who is the President of MicroStrategy, also corroborated Micheal Saylor’s view when he said that the firm remains committed to holding the crypto asset in the future and exploring how to gather more of the digital coin.

All of this view was shared in the 2020 fourth quarterly report of the company, where the firm’s CEO and the President confirmed that they would continue to invest in Bitcoin even if the asset’s value were to decline.

 

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