MicroStrategy Pumps its Bitcoin Stash to 70,470 BTC, The Day Treasury Secretary Announces New Stimulus Checks Coming Next Week
The company buys another 29,646 BTC as it believes bitcoin will continue to provide “the opportunity for better returns and preserve the value of our capital over time compared to holding cash.”
Publicly-traded MicroStrategy has added another 29,646 BTC, as expected, in its balance sheet at an average price of $21,925 per BTC.
These Bitcoin have been bought from the proceeds of the $650 million senior convertible notes issued just this month. Michael J. Saylor, CEO of MicroStrategy, said,
Michael J. Saylor CEO of MicroStrategy
“The acquisition of additional bitcoins announced today reaffirms our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value. We believe the proactive management of our balance sheet, combined with the improved revenue and profitability performance of the Company, have been significant factors in the recent appreciation in our stock price.”
Now, as of December 21, 2020, the company holds an aggregate of 70,470 bitcoins, 0.37% of BTC’s circulating supply, acquired at an aggregate purchase price of approximately $1.125 billion through Coinbase.
With this, MicroStrategy now holds more BTC than the US Government, which has 69,420 BTC in its stash but less than the Chinese government's 194,775 BTC holdings. Phong Le, President & CFO of MicroStrategy, said,
Phong Le President & CFO of MicroStrategy
“The Company continues to believe bitcoin will provide the opportunity for better returns and preserve the value of our capital over time compared to holding cash. We also remain dedicated to our customers and our goal of operating a growing profitable business intelligence company.”
Start that Money Printer
Interestingly, just today, Treasury Secretary Steven Mnuchin said that Americans who qualify for direct payments could get money in their bank accounts in a matter of days. Mnuchin told CNBC on Monday,
Steven Mnuchin Treasury Secretary
“The good news is this is a very, very fast way of getting money into the economy. Let me emphasize: People are going to see this money at the beginning of next week”
This came just hours after Congress approved the $900 billion Covid-19 relief bill in which individuals, including children, are receiving $600 in direct payments. Mnuchin expects this money to “take us through the recovery.”
“So it’s very fast, it’s money that gets recirculated in the economy,” he added.
“People go out and spend this money, and that helps small businesses and that helps getting more people back to work.”
Encouraging others to do the same
The announcement of MicroStrategy’s big bet on Bitcoin’s future also came on the day the digital asset fell under $22k from the high of $24,300.
Over the weekend, Saylor also encouraged Tesla CEO Elon Musk to make a similar decision to MicroStrategy and replace cash with bitcoin in their balance sheet.
“Do your shareholders a $100 billion favor,” said Saylor adding, “Other firms on the S&P 500 would follow your lead & in time, it would grow to become a $1 trillion favor.”
During the exchange with Musk, Saylor shared that he has purchased more than $1.3 billion in Bitcoin and offered to “share my playbook with you offline – from one rocket scientist to another.”