MicroStrategy doubles down on BTC; Purchases an additional 19,452 BTC
- MicroStrategy is currently holding on to 90,531 BTC and seeks to purchase more in the future.
- MicroStrategy’s CFO believes that the firm’s BTC investments complement its software business.
- Per Michael Saylor, BTC’s market value will soon increase to £70.85 billion.
MicroStrategy Inc., the leading independent publicly-traded intelligence firm has invested an additional £0.722 billion in BTC. The firm unveiled this news through a tweet and a press release on February 24, noting that the company purchased approximately 19,452 BTC at £37,431.75 per coin. Through this investment, MicroStrategy’s BTC wealth has increased to approximately 90,531 coins.
According to the press release, the company acquired its entire BTC wealth at a collective amount of approximately £1,539.55. To this end, MicroStrategy believes that it bought each coin at an average price of £17,008.84, inclusive of fees and expenses.
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Saylor said this investment is part of the company’s wider goal, which involves expanding its enterprise analytics software business and buying and hodling BTC. According to him, this purchase reaffirms the firm’s belief that BTC can serve as an effective and reliable store of value.
Plans to purchase more BTC
MicroStrategy intends to push forward its strategy of acquiring more BTC with excess cash. The company might from time to time, issue debt or equity securities in capital-raising transactions, subject to market conditions. In doing so, the company hopes to get profits that it would use to purchase more BTC.
Commenting on this bullish development, MicroStrategy’s President and CFO, Phong Le, said,
MicroStrategy remains dedicated to our enterprise analytics customers and our goal of operating a growing profitable business intelligence company. We believe our bitcoin strategy, including our bitcoin holdings and related activities in support of the bitcoin network, is complementary to our software business, by enhancing awareness of our brand and providing opportunities to secure new customers.
This news comes after Michael Saylor predicted that BTC’s market value would surge £70.85 trillion in the future. He made this prediction during an interview on February 23, where he said that BTC would soon flip gold and absorb its entire market cap. He added that BTC would then subsume the market value of negative-yielding sovereign debt, among other monetary indexes until it hits £70.85 trillion. Saylor expects that as BTC soldiers on to achieve this feat, it will shed volatility and become a stabilising influence in the global financial system.