MicroStrategy & Its Latest Bitcoin Purchase
Recently MicroStrategy revealed that it has spent about $25 million to buy an extra 660 Bitcoin. This move marks a significant milestone for the crypto industry and is the latest in a string of major companies investing in Bitcoin.
As per what the CEO Michael Saylor revealed on Twitter, the company bought the digital asset between December 30, 2021, and January 31, 2022. Moreover, it has paid an approximate average price of $37,865.
Before we dive deeper to analyze MicroStrategy’s big bitcoin purchase, let’s learn how the company works first.
What Is MicroStrategy?
For those unfamiliar with MicroStrategy, the company is a publicly traded business intelligence and analytics firm founded in 1989.
The firm provides software, services, and consulting to businesses that want to better analyze their data and make more informed decisions.
What makes MicroStrategy’s Bitcoin purchase even more significant is that the company has been a leader in the adoption of blockchain technology.
It provides business intelligence (BI) products and services for companies and organizations to manage their data. More precisely, it offers enterprise analytics, mobile BI, AI-driven insights, embedded analytics, data exploration, collaboration, cloud services, artificial intelligence (AI) capabilities, and more. Microstrategy’s platform has been around since 1989. Moreover, thousands of organizations use its products worldwide.
How Do MicroStrategy Products Work?
The main purpose of using this product is to create data reports for various uses. For example, various departments or stakeholders within a business setting or organization use this as evidence. With all these components combined together into one powerful platform, it allows businesses to make better decisions quickly. And how does MicroStrategy do that? It visualizes their data visually without having to manually analyze them through extensive formulas or spreadsheets. This makes life easier for all parties involved in making decisions. So, in essence, MicroStrategy helps businesses make informed decisions based on these data reports!
MicroStrategy’s Bitcoin Purchase History
In 2021, it became one of the first large companies to invest in Bitcoin. The company purchased 21,454 Bitcoins in August for $250 million. Then, this followed subsequent purchases in September and December for a total of 71,079 Bitcoin worth $1.125 billion. As a result, MicroStrategy has become a major player in the cryptocurrency space and is using Bitcoin as a long-term store of value. The company aims to become a leader in the cryptocurrency industry. Moreover, it has plans to use Bitcoin to pay for products and services.
Now, MicroStrategy Owns More Than 125,000 Bitcoin
The astounding 125,051 Bitcoins that the business intelligence organization presently owns, as per Bitcoin’s current price of $38,673, are equivalent to $4.836 billion.
MicroStrategy continued, “With a total of $3.78 billion on the market-leading asset from its first buy, our substantial holdings have an average purchase price of about $30,200 per BTC.”
So, due to his upbeat and bullish views on the currency, Michael Saylor has emerged as a vocal “leader” in the Bitcoin community. He has had a strong commitment to Bitcoin ever since making his initial $235 million purchase in August 2020.
Since then, MicroStrategy has continued to invest money in Bitcoin through a series of acquisitions made at the beginning of 2021. These purchases included a massive $1 billion acquisition in February. Moreover, the company invested another $177 million in August. And then came a June commitment to raise further funds by selling bonded debt.
Not to mention, MicroStrategy has managed to survive through inflation and regulatory challenges despite Bitcoin’s recent slide from a high of $69k. This might be in part because El Salvador has continued to push for adoption. As a result, the asset is becoming more accepted within legacy financial markets through ETFs and funds.
What Does Michael Saylor Feel About Bitcoins?
The company’s CEO, Michael Saylor, believes that Bitcoin is a better store of value than fiat currencies, which are subject to inflation and other economic risks. He also believes that Bitcoin is a more reliable asset for long-term investments than traditional stocks and bonds.
Final Words
The move is being seen as a major endorsement of Bitcoin and other cryptocurrencies. Besides, many people consider it a sign of the increasing acceptance of digital currencies as a viable asset class. Moreover, the move is also likely to encourage other companies to consider investing in Bitcoin.
