Michael Saylor’s MicroStrategy Buys Another $50 Million (2,574) in Bitcoin
- Founder Michael Saylor discloses MicroStrategy purchased another $50 million in Bitcoin
- The tech company now owns over 40,824 BTC
MicroStrategy is known as a platform for business analytics, guiding other enterprises in their efforts to transform their own brands. The brand originally launched in 1989 with founder Michael Saylor, signing McDonald's as their first major client in the early 1990s. In recent years, the company launched MicroStrategy 2020 as a way to use machine learning technology and augmented intelligence for business strategies.
Now, Saylor has announced another change – another massive investment, adding to the companies Bitcoin holdings. In a tweet on Friday, Saylor explained that the company purchased $50 million in Bitcoin, which amounts to 2,574 bitcoins. At the time of the purchase, the average cost per Bitcoin was $19,427.
MicroStrategy has purchased approximately 2,574 bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $19,427 per bitcoin. We now hold approximately 40,824 bitcoins.https://t.co/nwZcM9zAXZ
— Michael Saylor (@michael_saylor) December 4, 2020
This purchase is not the first time that the company has added Bitcoin to the company's financial assets. In August this year, the company turned to Bitcoin as it experienced fewer returns during the coronavirus pandemic that was detrimental to the economy. At the time, MicroStrategy purchased 21,454 BTC for $250 million in Bitcoin, the average price was much lower at about $11,635. A little over a month later, they purchased another 16,796 BTC for $175 million. With today's purchase of 2,574 BTC, the company owns just over $766M with bitcoin current hovering at $18,770.
Not only is the company extremely bullish on the top cryptocurrency, but Saylor has become a beacon in recent months, spreading the word of bitcoin to his peers. He even disclosed that he owns 17,732 BTC personally, worth over $332M.
Saylor's faith in Bitcoin was recently discussed with Marc Friedrich. The CEO doesn't believe that Bitcoin is in early the same position as it was even five years ago, making arguments against it irrelevant. With the massive growth since 2017, Saylor compares the asset to the career of Lebron James.
“…Lebron James played basketball from age 9 to 18, and he was talented but erratic and volatile. But then he grew up and from age 18 to 28, he destroyed everybody and everything in his way,” Saylor remarked.
Large transactions of Bitcoin – i.e. anything above $100,000 in value – have increased significantly amongst institutional investors in the last few months. Analysts say that there have been many factors to influence the investment, but Saylor and other investors believe that Bitcoin will remain to be a store of value in the market.
To view the disclosure that Saylor revealed in the tweet, here.