MicroStrategy Sold up to $1 Billion in Stocks for More Bitcoin, SEC Filing Reveals

The company has been highly bullish on cryptocurrency, with CEO Michael Saylor praising the future of digital assets.

By
Chung Yee
on
June 15, 2021
Category:
Blockchain News

The Selling

Michael Saylor, the CEO of MicroStrategy, announced on his Twitter account that the company may sell its Class A stocks over time to purchase more Bitcoins. 

Source


Saylor, More Bullish Than Ever

The CEO of MicroStrategy was public about his board’s decision to go all in on the company’s Bitcoin acquisition strategy. Saylor has been one of the most vocal advocates for cryptocurrency in traditional finance. Less than a week ago, the company announced via its official website that it intends to raise approximately $500 million in bond sale and the proceeds to be used  to acquire more Bitcoin. 

With purchases on May 14th and May 19th of this year, the company’s total Bitcoin holdings reached 92,079. The coins were purchased for a total sum of $2.251 billion averaging about $24,450 per Bitcoin. With the latest news, it looks like Saylor is not planning to step on the brakes just yet. 

Currently, MicroStrategy has the largest Bitcoin treasury of any publicly traded company in the world. It far outpaces the closest publicly traded company that holds Bitcoin, which is Tesla Inc. 


Source 


Profitable Decision, So Far 

Michael Saylor’s decision to steer the cloud software company into the crypto world is not without controversies. His bold positioning has led to many critics labelling his act as reckless and irresponsible. So far his decision has been vindicated - MicroStrategy’s stocks were trading at $100 in March, 2020, and rose to $400 by the end of the year. 


Source

The value of Bitcoin today is trading at approximately $40,000 a coin. That would mean that based on the average purchase price of $24,450, the asset has appreciated 63.6%. The corporate strategy will continue with more Bitcoin acquisition. In the Q4 2020’s presentation, MicroStrategy has outlined its priorities in 2021. 

Source 

 

An Investment Strategy for the Long Haul

The Billionaire’s extraordinary conviction in the crypto asset is beyond comparison. In its paperwork filing to the SEC, it outlined the general corporate strategy in respect of its Bitcoin holding. 

The filing says, “We view our Bitcoin holdings as long-term holdings, and we do not plan to engage in regular trading of Bitcoin and have not hedged or otherwise entered into derivative contracts with respect to our Bitcoin holdings.”

The recent capitulation did not seem to dampen Michael Saylor’s bullishness. Investors are happy as long as their investment appreciates in value. The decision to invest was executed swiftly and timeously. It was done right after Bitcoin’s halving cycle (a process where the block reward to miners is slashed to half) which is usually seen as a catalyst for a price rally and at a time when the Federal Reserve’s printing of the U.S. Dollar is at an unprecedented rate. 

Source 

 

A New Dawn?

The bold steps taken by Michael Saylor are unprecedented. Institutions around the world may follow suit but with some degree of caution and would like only to constitute a small percentage of the company’s reserve. With the rising trend of continuous institutional adoption and better regulatory framework, this may come sooner than later. 

Tags:
No items found.
Chung Yee

Chung Yee has a legal background and has been involved in research works for the legal and compliance industry. Writing is his passion, centered on topics such as the blockchain and finance. His largest crypto holdings are Solana, Ethereum, and BNB Token.

Text Link

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.