MicroStrategy Announces Company’s Third Largest Bitcoin Investment
MicroStrategy CEO Michael Saylor announced last week that the company has reinvested in Bitcoin. The $50 million purchase represents the third largest Bitcoin investment in the company’s history.
On December 4, Michael Saylor posted a tweet stating that the publicly traded software company MicroStrategy had acquired an additional 2,574 Bitcoin. The Bitcoin price at that time by Bitcoin Evolution Review was approximately $19,427. As a result, the company now has a total ownership of approximately 40,824 Bitcoin.
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However, the investment is unlikely to have surprised many. The company has already announced that it will convert its cash reserves into Bitcoin. The investment is „dependent on market conditions and business requirements“. In August and September 2020, the company already announced multi-million Bitcoin investments. At that time, the total investment amounted to 38,240 BTCs with a value of approximately US$425 million. Even in 2013, MicroStrategy CEO Michael Saylor positioned himself as a clear opponent of Bitcoin and declared that the crypto currency had no future for him:
Bitcoin’s days are numbered. It seems only a matter of time before it suffers the same fate as online gaming.
The BTC price has risen sharply since then. While the exchange rate was 13,745 US dollars at the time of the first two investments, it is now over 19,000 US dollars. MicroStrategy’s average cost is $11,635. Saylor stressed that the current investment is part of MicroStrategy’s Treasury Reserve policy. The goal is to „avoid inflation sensitive cash for Bitcoin“.
The company’s CEO first expressed interest in Bitcoin in July 2020. Since then, MicroStrategy’s shares have increased by 170 percent.