MicroStrategy has trapped to its bitcoin technique through thick and slim. At this point, every dip appears to be a buying opportunity for the firm, which has completely thrown its weight behind bitcoin. Its CEO Michael Saylor is a maximalist that feels the future is bitcoin. MicroStrategy has been upping its bitcoin investment through the year, garnering a stash of over 100K bitcoins.
Even now, the firm continues to straighten its position within the digital asset. CEO Erina Saylor announced that the company had bought another five, 050 bitcoins, bringing the overall assets held by the business to approximately 114, 042 bitcoins. The 5, 050 bitcoins were bought for approximately $242 million, with an typical price of $48, 099 per BTC. This brings the quantity of the digital asset kept by the firm to $3. 6 billion. All are gotten at an average price of $27, 713 per coin.
MicroStrategy has purchased an additional five, 050 bitcoins for ~$242. 9 million in cash at an average price of ~$48, 099 per #bitcoin. Since 9/12/21 we #hodl ~114, 042 bitcoins acquired meant for ~$3. 16 billion at an average price of ~$27, 713 per bitcoin. $MSTRhttps://t.co/2ESbTy6ad7
— Michael Saylor⚡️ (@michael_saylor) September 13, 2021
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MicroStrategy has refused to sell off its crypto holdings at any point. Crashes appear to not phase the firm as they invest even more into the asset with every cost dip. This latest obtain goes to show their commitment towards the long-term growth of bitcoin. Saylor also has both individual and institutional interest in the asset and is one of the most vocal corporate supporters of the electronic currency.
MicroStrategy Producing All The Right Moves
MicroStrategy has now seemingly empty traditional assets in favor of investing in bitcoin. A report from Bitcoinist shows where the firm will be profit-wise had it elected to invest in one of the most well-known conventional investments, gold, instead of investing in bitcoin. Since bitcoin provides consistently outperformed gold by at least 200% year more than year for the past couple of years, MicroStrategy’s investment would have way much less in the way of return. Or since the report shows, the firm would be recording losses at this time.
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Comparisons between the digital resource and gold from Mar to June 2020, the timeframe when the firm first committed to bitcoin, shows what the current value of the investment will be. MicroStrategy had put about $2 billion into the bitcoin investment, which currently has appreciated over 376% in the span of a yr. On the other hand, had the company put this $2 billion into a traditional asset like gold, it would have lost 80% of its total value.
This is because gold has given negative returns upon investment in the past year. Therefore any investment in the asset would result in a loss. The success of MicroStrategy’s bitcoin investment has also bolstered the company’s standing up profit-wise. Not only is its investment outperforming gold, but the company itself has also outperformed gold in the market.
BTC price over $46, 000 | Source: BTCUSD on TradingView. com
MicroStrategy’s shares have got appreciated 428% in the year following the launch of its bitcoin fund. Outperforming both the NASDAQ and the S& P500 mixed. MicroStrategy is currently the leading business investor in bitcoin.
Featured image from CoinQuora, chart from TradingView. possuindo