MicroStrategy Adds Another 2,574 Bitcoins To Holdings
Nasdaq-listed software analytics firm MicroStrategy has added another 2,574 bitcoins to its treasury after investing $50 million more into Bitcoin (BTC).
The public company now holds 40,825 bitcoins after its CEO Michael Saylor opted for a Bitcoin Standard earlier this year.
According to the SEC filings yesterday, the 2,754 bitcoins have an average price of $19,427 each, and has invested a total of $475 million in Bitcoin.
MicroStrategy CEO Michael Saylor announced the purchase on Twitter, where he has built a cult following from many Bitcoiners.
The tweet received a lot of response as one might expect, with prominent Bitcoiner Jeff Booth saying Gigachad Saylor would ‘go down as one of the wisest entrepreneurs of the decade’ for acting so boldly.
MicroStrategy on a Bitcoin Buying Spree
MicroStrategy first announced its plunge into Bitcoin in late July when it bought 21,454 bitcoins for a total price of $250 million. A move that shocked everyone, including the most ardent Bitcoin maximalists.
And CEO Michael Saylor rocked the world just over a month later when he announced MicroStrategy had invested another $175 million, buying a further 16,796 bitcoins.
Michael Saylor has been on many interviews since and repeatedly said that he saw the company’s cash holdings as a ‘melting ice cube’. And after looking at all other possibilities, he saw no better asset to store most of the company’s liquidity than Bitcoin.
Some have tried to mock Saylor, including CNBC anchor Melissa Lee, who showed a lack of knowledge when she tried to naively grill Saylor about Bitcoin in a recent interview.
Lee confronted Saylor about MicroStrategy being a software company or a Bitcoin fund, but Saylor explained a couple of times that the company P/L was in software but thought its treasury was safer stored in Bitcoin than USD.
Michael Saylor is also on record saying he intends to hold Bitcoin as part of MicroStrategy’s treasury for 100 years, calling it the ‘most rational’ asset to store wealth anywhere in the world.
And MicroStrategy’s latest buy, near the local top, is a further testament to the confidence the CEO has in Bitcoin’s long term price projection. Not forgetting the company’s three largest shareholders BlackRock, Vanguard and JPMorgan, who would be privy to any proposed purchase.
MicroStrategy Will Continue To Add Bitcoin To Its Treasury, And Others Will Follow
Any public company buying $50 million of Bitcoin is absolutely bullish, but for some reason MicroStrategy’s latest purchase isn’t as ‘headline making’.
MicroStrategy already moved the goal posts when it spent $425 million on Bitcoin earlier this year, so a $50 million buy is less groundbreaking. However, it is a sign of confidence in Bitcoin, and one that will keep Bitcoin as part of boardroom discussions.
Added with MicroStrategy’s (MSTR) stock price up over 150% since it first announced its move into Bitcoin, it’s without question that every CEO is taking note.
MicroStrategy was the first public company to announce it was making Bitcoin a part of its treasury, and it won’t be the last. As quarterly reports are published, we can expect many more announcements of public companies following gigachad Michael Saylor’s lead.
Author: Tommy Limpitlaw
How many Bitcoins are left?
There can only ever be 21 million bitcoins. At the time of writing, there are 18,562,756 bitcoins in circulation. There are 6.25 bitcoins minted roughly every 10 minutes, so that’s 900 every day. The amount of newly minted bitcoins is cut in half roughly every 4 years, in what is known as the halvening. The halvening will continue to take place until the last fraction of Bitcoin is minted in around the year 2140.
Can I start Bitcoin with no money?
Absolutely! Bitcoin is like other investments and currencies. If you have some money to invest, you can make more faster. You can lose more faster, as well if you don’t know what you’re doing. But if you don’t have any money to invest you can earn free bitcoins from playing games, learning about cryptocurrencies, or offering your skills for Bitcoin.
Who is the CEO if Bitcoin?
There is no CEO. There is no central authority that directs or controls Bitcoin. It was created by a pseudonymous programmer Satoshi Nakamoto, but he gave it up to the community, and now all decisions are made by the hundreds of thousands of miners and nodes who work for the Bitcoin network.
Can you buy less than 1 Bitcoin?
Yes. Every Bitcoin can broken down into 100 million bits. They are known as satoshis, after the pseudonymous creator Satoshi Nakamoto. And some companies will let you buy as little as $1 worth of Bitcoin, which at time of writing is worth about 11,000 satoshis. There are many companies that have a system for dollar cost averaging (DCA). This is a great way to buy Bitcoin, and is known in the space as ‘Stacking Sats’. Basically, what you do is set up small automatic, recurring payments to buy Bitcoin (or sats), and you DCA over time.