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MicroStrategy adds $1 billion to its Bitcoin reserves

Photo of: Nathan VDH
by Nathan VDH

MicroStrategy spends $1 billion to acquire 19,452 Bitcoin. And CEO Michael Saylor doesn’t plan to stop there. His strategy is to focus on his core business and the purchase of Bitcoin.

MicroStrategy is not an average investor. It is not concerned by Bill Gates’ recent warning about Bitcoin’s volatility. Proof of this is that the company has just allocated $1 billion to crypto-active.

A few days earlier, the firm announced the issuance of new bonds to finance its upcoming acquisition of Bitcoin. The operation was a success with a little more than a billion dollars raised.

The transaction is now finalized. MicroStrategy announces that it holds an additional 19,452 bitcoins. MicroStrategy’s BTC equity is up 27% and the company now has 90,531 tokens in its virtual vaults.

And for this latest purchase, the company is paying the full price, about $52,765 per token. Michael Saylor, its CEO, is therefore not too worried about the plunge of the cryptocurrencies at the beginning of the week.

Bitcoin went from $57,000 to less than $48,000. However, since then, the queen of cryptocurrencies has climbed back up to $50,000. The leader is therefore betting on a strong appreciation in value over time.

His strategy is clear. MicroStrategy now has two entrepreneurial priorities: its core business, data analysis software, and the purchase of Bitcoin.

“The company remains focused on our two business strategies, growing our business analysis software services and acquiring and owning Bitcoin,” said the CEO.

In fact, this policy has accelerated in the space of just a few months. Last August, the publisher spent $250 million to acquire its first Bitcoins. And during the last 6 months, it allocated more than 4 billion dollars to crypto-active.

More purchases may follow, but perhaps not in the immediate future. Conviction about the BTC is unchanged, however. Thus, Bitcoin, “as the world’s most widely adopted cryptocurrency, can serve as a reliable store of value,” the CEO argues.

“We will continue our strategy of acquiring Bitcoin with excess cash and may from time to time, subject to market conditions, issue debt or equity securities as part of capital raising transactions, with the intention of using the proceeds to purchase additional Bitcoin,” he added.