MicroStrategy buys 7,000 more Bitcoin yet again

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TL;DR Breakdown

  • Mocrostrategy buys 7,000 more Bitcoin.
  • Firms Bitcoin stash now 121,044.
  • Saylor says firm has no intention to sell Bitcoin in next 100 years.

Business intelligence firm MicroStrategy has again announced that it invested $414 million to buy $7,000 Bitcoin on Monday. This brings its total stash to 121,044 Bitcoin.

Michael Saylor, the Chief Executive Officer of the firm, made the announcement in a Twitter post. Ever since he became a crypto enthusiast, he has overseen continued Bitcoin accumulation by his firm.

The recent purchase was funded with proceeds from a stock sale previously disclosed in June that has thus far raised approximately $414.4 million through the sale of 571,000 shares in the fourth quarter.

Upon announcing that they had bought another 7,002 bitcoins for around $414.4 million in cash, he noted that their average price sits at $59,178.

At the time of this writing, Bitcoin’s price sits at around $57K, which is an increase of around 93 percent from the average price of $29,534 at which MicroStrategy has made all of its purchases.

According to CoinGecko, MicroStrategy remains the public company with the largest Bitcoin stash, followed by Tesla, which reportedly owns 48,000 BTC.

Plans MicroStrategy has for its Bitcoin stash

CEO Michael Saylor has made bitcoin acquisition a second mandate for his 32-year-old company. Its other business is developing business-intelligence software.

In August 2020, the firm made its first Bitcoin purchase of around $250 million. Before their first purchase, the firm told shareholders that fiat was no longer a safe asset hence the need for Bitcoin. Weeks after the firm’s first Bitcoin purchase, they bought more Bitcoin worth $175 million.

Michael Saylor, however, disclosed that the firm did not just arrive at buying Bitcoin. In an interview with Raoul Pal, he states that the decision to purchase BTC was reached after serious discussions with the firm’s decision-makers and investors.

Saylor discloses that if they are to transfer millions of idle cash into Bitcoin, everyone has to be on board. He also said that the firm’s Bitcoin is not a speculation or a hedge. Instead, it’s a deliberate corporate strategy to adopt the Bitcoin standard.

According to Saylor, they settled for Bitcoin when they discovered other assets are vulnerable to taxes and ridiculous fees. He disclosed that other assets unaffected by taxes or fees were unsuitable or controlled by a body or government.
The MicroStrategy board acknowledged that Bitcoin gets better with time. He called it the “hive of cybernetic hornets protected by a wall of encrypted energy.”

While answering if the firm aims to sell the coins eventually when they make enough profit, Saylor said there are no plans to sell the coin. Saylor hopes after his tenure as CEO, the next CEO will look favorably upon Bitcoin as well. He said the firm could hold the coin for as long as 100 years.

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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