Business intelligence firm MicroStrategy has more than doubled its Bitcoin investment, spending another $650 million to make its total expenditure $1.125 billion.
The move was announced on the MicroStrategy website, and CEO Michael Saylor took to Twitter to share the news.
It was MicroStrategy’s biggest Bitcoin investment to date, netting the Nasdaq-listed firm a further 29,646 bitcoins at an average price of $21,925, further cementing the company’s belief in the future of the world’s leading cryptocurrency.
On the official announcement, Michael Saylor said the Bitcoin purchase had only reaffirmed the company’s belief that Bitcoin is a dependable store of value and it had been the main factor ‘in the recent appreciation in [MicroStrategy’s] stock price.’
MicroStrategy President and CFO Phong Le said, ‘The Company continues to believe Bitcoin will provide the opportunity for better returns and preserve the value of our capital over time compared to holding cash.’
MicroStrategy’s Bitcoin Investment Shocked Everyone
Since first announcing it was adopting a Bitcoin standard back in July 2020, MicroStrategy has since made a total of 4 Bitcoin investments.
And while every Bitcoiner expected corporate money to start buying Bitcoin, nobody expected a move as big as MicroStrategy’s this early.
Everyone expected a 1-5% Bitcoin investment, but MicroStrategy has made Bitcoin the largest part of its Treasury Reserve Policy.
The total amount of Bitcoins purchased is estimated to be 70,470 bitcoins. The total amount invested is $1.125 billion, which today is worth $1.635 billion – an increase of 45%.
Of course the new investment hasn’t seen much increase in value, but the business intelligence firm is confident in the Bitcoin long game.
The latest Bitcoin purchase came as no surprise, after MicroStrategy announced it was selling up to $400 million in convertible senior notes, using the proceeds to buy more Bitcoin.
The bond offering was so successful, however, that MicroStrategy raised $650 million at very favourable rates of 0.75%.
In fact, the rates were so favourable it has led some to speculate the loan was coming from large institutions that can’t legally get exposure to Bitcoin yet.
That cannot be confirmed yet, but it could be in the MicroStrategy’s quarterly report.
Michael Saylor – Bitcoiner of The Year 2020
MicroStrategy CEO Michael Saylor has really come to prominence in the Bitcoin space this year.
After first announcing MicroStrategy was making Bitcoin the principal holding in its treasury reserve strategy, Saylor has become the most interviewed person in the Bitcoin space.
The MIT educated rocket scientist was a relatively unknown CEO before August, but since investing over $1 billion in Bitcoin since, he has been the centre of much of the positive news.
As Saylor says himself, it’s pretty clear something big had started before he came on the scene, and while that is clear, the gigachad has moved Bitcoin adoption on so much it’s impossible to quantify.
Because of Saylor’s bold vision, Bitcoin has become the talking point for every boardroom around the world.
And any company holding a lot of cash or negative yielding bonds, are now thinking about Bitcoin, thanks to Michael Saylor.