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MicroStrategy Deepens its crypto reserves with another $240 Million purchase of Bitcoin

MicroStrategy Deepens its crypto reserves with another $240 Million purchase of Bitcoin

Anubha Anand

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MicroStrategy has adhered thickly and thinly to its Bitcoin strategy. Every dip now appears to be a buying opportunity for a company that has thrown its weight entirely behind bitcoin. His CEO Michael Saylor is a maximalist who believes that Bitcoin is the future. MicroStrategy’s Bitcoin investment increased throughout the year to more than 100K bitcoins.

Even now, the company continues to improve its digital position. CEO Michael Saylor announced that the company purchased a further 5,050 bitcoins, bringing the company’s total assets to around 114,042 bitcoins. Around $242 million was bought for the 5,050 Bitcoins, averaging $48,098 per BTC. This brings to $3.6 billion the total amount of the company’s Digital Assets. Everyone receives $27,713 per coin at an average price.

MicroStrategy has refused at any time to sell its crypto stocks. With every price decrease, crashes do not appear to be in the company as they invest more in the asset. This recent acquisition demonstrates its dedication to bitcoin’s long-term growth. Saylor also has an interest in the asset both individually and institutionally and is one of the most vocal supporters of digital currency.

MicroStrategy is making all of the right moves

MicroStrategy appears to have abandoned traditional assets in favor of Bitcoin investment. According to a Bitcoinist report, the firm would have made more money if it had invested in gold, one of the most well-known traditional investments, instead of bitcoin. Since bitcoin has consistently outperformed gold by at least 200 percent year over year over the last few years, MicroStrategy’s investment would yield far less in terms of return. Alternatively, as the report shows, the company would be losing money at this point.

Comparisons between the digital asset and gold from March to June 2020, when the firm first invested in bitcoin, show what the investment’s current value would be. MicroStrategy invested approximately $2 billion in bitcoin, which has now increased by more than 376 percent in a year. On the other hand, if the firm had invested $2 billion in a traditional asset such as gold, it would have lost 80% of its total value. 

This is due to the fact that gold has provided negative returns on investment over the last year. As a result, any investment in the asset would be a loss. The success of MicroStrategy’s bitcoin investment has also helped the company’s bottom line. Not only has its investment outperformed gold, but the company as a whole has outperformed gold in the market.

Bitcoin price chart from TradingView.com

MicroStrategy’s stock has increased 428 percent in the year since the launch of its bitcoin fund. Outperforming both the NASDAQ and the S& P 500. MicroStrategy is the leading corporate investor in bitcoin at the moment.

Source: NEWSBTC

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