MicroStrategy has recently been converting significant amounts of its cash reserves to Bitcoin. In what is yet another in its Bitcoin investment streak, the publicly-traded company is in the news today after it purchased more of the crypto-asset. According to CEO Michael Saylor, the business intelligence firm has now bought an additional 262 Bitcoins for approximately $15 million at an average price of about $57,146 per Bitcoin.
As of 12 March, MicroStrategy ‘hodls’ close to 91,326 Bitcoins, all of which have been acquired for roughly $2.211 billion at an average price of $24,214 per Bitcoin.
Needless to say, CEO Michael Saylor has been a crucial influence behind the company’s Bitcoin purchases. The CEO is a vocal maximalist and believes that someday, the price of Bitcoin will appreciate to an extent where the digital currency will come to have a “stabilizing influence on the entire global financial system.”
The Bitcoin bull also thinks that the asset is a better hedge than Gold against the risk of monetary inflation. He has often argued that companies must add Bitcoin to their balance sheets, instead of holding cash or precious metals, and bonds. According to him, crypto allows firms to generate greater long-term returns.
This digital gold narrative is not restricted to the likes of Saylor or members of the crypto-community, however. The hedge theory has trickled down to entities such as BNY Mellon, Tesla, and several mainstream firms that have since decided to enter the Bitcoin market.
It will be interesting to see how much more Bitcoin will MicroStrategy acquire under Saylor, given that to date some of his predictions have been rather accurate. For instance, the CEO once foretold that Bitcoin’s market cap would surge to a trillion dollars. Well, that happened.