Recently, Live Bitcoin News reported that MicroStrategy Inc. spent more than 0 million on bitcoin. The company’s CEO Michael Saylor obviously believes in crypto and thinks bitcoin is the money of the future. This gamble has already paid off somewhat given that the company has now added roughly 0 million to its overall value thanks to the growing price of the digital asset.MicroStrategy Is Witnessing Solid Results from Its BTC BetWhen MicroStrategy first bought the bitcoin in question, the price was hovering at around ,500, but now the currency has shot up into the high ,800 range, meaning the company is already experiencing great expansion and has added more to its overall value. In a statement, Saylor explained his reasoning behind putting so much faith into bitcoin,
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Recently, Live Bitcoin News reported that MicroStrategy Inc. spent more than $250 million on bitcoin. The company’s CEO Michael Saylor obviously believes in crypto and thinks bitcoin is the money of the future. This gamble has already paid off somewhat given that the company has now added roughly $100 million to its overall value thanks to the growing price of the digital asset.
MicroStrategy Is Witnessing Solid Results from Its BTC Bet
When MicroStrategy first bought the bitcoin in question, the price was hovering at around $11,500, but now the currency has shot up into the high $11,800 range, meaning the company is already experiencing great expansion and has added more to its overall value. In a statement, Saylor explained his reasoning behind putting so much faith into bitcoin, claiming:
Our investment in bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value to our shareholders. This investment reflects our belief that bitcoin, as the world’s most widely adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash. Since its inception over a decade ago, bitcoin has emerged as a significant addition to the global financial system, with characteristics that are useful to both individuals and institutions. MicroStrategy has recognized bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made bitcoin the principle holding in its treasury reserve strategy.
Speaking further, Saylor provided several reasons as to why his company believes bitcoin will potentially surge and become one of the biggest – if not the biggest – asset users can hold. Among these reasons is political unrest in both the United States and abroad, the ongoing coronavirus pandemic, and the technical properties behind both bitcoin and blockchain.
MicroStrategy has also gotten more popular with traders ever since it made its massive bitcoin investment. The company’s stock shares added more than ten percent to their prices. The company was previously valued at roughly $1.3 billion, though now, that number is closer to $1.4 billion.
Other Companies Will Do the Same
Micah Erstling – trader at crypto market maker GSR – stated that the recent decision by MicroStrategy to invest so much in bitcoin is likely to persuade further institutional traders to get involved in crypto. He mentions:
[MicroStrategy’s bitcoin purchase] serves as further confirmation of the institutional investment thesis of betting on bitcoin as a hedge to stimulus printing as well as global political and economic uncertainty. The longer-term bull case for bitcoin remains strong and will continue to build as developments like these continue to emerge, alongside what seems to be an ongoing free flow of fiscal stimulus.
Nick Neuman – chief executive of bitcoin security firm Casa – states that other companies are likely to follow in MicroStrategy’s footsteps and invest their own portfolios into bitcoin and its altcoin cousins.