Business analytics and mobile software firm, MicroStrategy has taken the world by surprise again this time announcing that it has bought 13,005 for roughly $489 million.
The purchase brings their total Bitcoin stash to 105,085 at an average of $26,080 apiece, including fees and other expenses. Technically, MicroStrategy alone now holds about 0.5 percent of the entire Bitcoin in existence.
MicroStrategy has in the past year gone from relative obscurity to a well-known force on Wall Street and in the crypto community. This largely is thanks to the firm CEO, Michael Saylor who can’t stop preaching Bitcoin anymore.
In a CNBC interview last week, Saylor defended the company’s crypto pursuits, which has involved debt offerings in order to buy more Bitcoin. Beyond their current holding, the firm has filed for a program to sell $1 billion worth of additional stock, proceeds from which can be used to acquire bitcoin.
Why, plans MicroStrategy has for their Bitcoin holding
In August 2020, the firm made its first Bitcoin purchase of around $250 million. Before their first purchase, the firm told shareholders that fiat was no longer a safe asset hence the need for Bitcoin. Weeks after the firm’s first Bitcoin purchase, they bought more Bitcoin worth $175 million.
Michael Saylor, however, disclosed that the firm did not just arrive at buying Bitcoin. He states in an interview with Raoul Paul that the decision to purchase BTC was reached after serious discussions with the firm’s decision-makers and investors.
Saylor discloses that, if they are to transfer millions of idle cash into Bitcoin, everyone has to be on board. He also said that the firm’s Bitcoin is not a speculation or a hedge. Instead, it’s a deliberate corporate strategy to adopt the Bitcoin standard.
According to Saylor, they settled for Bitcoin when they discovered other assets are vulnerable to taxes and ridiculous fees. He disclosed that other assets unaffected by taxes or fees were unsuitable or controlled by a body or government.
The MicroStrategy acknowledged that Bitcoin gets better with time. He called it the “hive of cybernetic hornets protected by a wall of encrypted energy.”
While answering if the firm aims to sell the coins eventually when they make enough profit, Saylor said there are no plans to sell the coin. Saylor hopes after his tenure as CEO, the next CEO will look favorably upon Bitcoin as well. He said the firm could hold the coin for as long as 100 years.