Why is MicroStrategy Contentiously Collecting Bitcoin?
Cryptocurrency Expert - Ollie
MicroStrategy has consistently said that its approach is simple: sell software, take all possible profits, and store value, though not in dollars. Michael Saylor, CEO of MicroStrategy, revealed on March 12 that his company had acquired an additional 362 Bitcoin (BTC) valued about $15 million at the time.
At that time, MicroStrategy and Saylor showed the market that they believe the dollar price is insignificant as opposed to Bitcoin, and that they are prepared to buy Bitcoin at any price. The drive behind this rapid accumulation is quite plain. Saylor feels that the safest move ahead for the company is not to do anything more than rely on its abilities: they value Bitcoin investments more than they support the US dollar to store value.
In an interview with CNBC anchor Melissa Lee at the end of 2020, the host asked Saylor if they were a software company or just a Bitcoin hedge fund?
Saylor replied saying that even though they do have a software company that generates cash, by putting all of the cash into a fiat currency and “allowed it to debase at 15 percent per year” meaning they would be losing money on the balance sheet.
Despite holding at least 90,500 BTCs, MicroStrategy is only accumulating $10 million to $15 million in clips. At the beginning of March, the firm has said to have purchased 328 BTC for $15M on March 1, 205 BTC for $10M on March 5 and, most recently, acquired 362 BTC for $15 million on March 12.
If one of the world's largest publicly known buyers of Bitcoin, seeks to collect as much of the asset as possible, the question remains, will we see more following in their footsteps.
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