The business intelligence company is starting this new year with new Bitcoin purchases after recording high profits from last year’s surge and had bought large amounts of Bitcoin before the digital asset skyrocketed to twice its price. The company is one of those institutions that influenced the institutional adoption of BTC. Last year, many firms and companies interested in the digital asset, especially since other asset classes like gold and bonds were not performing as they should.
Investors saw Bitcoin as a suitable alternative to act as a hedge against excessive money printing, diversifying one’s portfolio and reducing one dependency on gold. Many financial experts criticized gold’s failure to appreciate even with the economic downturn that caused inflation.
MicroStrategy makes another Bitcoin purchase
The firm seems to have fully endorsed Bitcoin because, presently, BTC is its dominant asset. A few weeks ago, MicroStrategy bought $10 million worth of BTC, so the new purchase makes it the second digital asset the firm bought this year. It made a filling recently to add almost 300 BTC to its holdings.
Compared to weeks ago, Bitcoin’s value is higher when the $10 million buy got the firm 314 BTC. Based on the CEO’s full support, MicroStrategy might be buying more digital assets soon. The Chief Executive, Michael Saylor, spoke recently about Bitcoin and its performance during the global pandemic.
Also read:The businessman advised people dependent on gold to sell their holdings because he believed gold was a dying asset. Saylor explained that gold and some other asset classes failed to hedge during the downturn, even with excessive money printing incidence.
He warned those still holding gold against waiting for hedge fund companies to start reducing their gold dependence. Saylor opined that companies who shifted towards the crypto industry were able to survive the harsh economic reality. The outspoken entrepreneur mentioned that PayPal took the right step by going into providing crypto-related services on its platform.
MicroStrategy’s strategic $10 Million buy
The firm bought its new holdings at almost $34,000 each, showing that it waited for a dip before buying the coins. The asset saw a slight drop, which people linked to the cryptocurrency prohibition in India.
Saylor also assured proper management of the institution’s balance sheet while buying Bitcoin at a fair price. MicroStrategy now has more than 71,000 BTC with the latest buy, showing how large the company’s holding stands. Its holdings now worth up to $2.9 billion caused by the price growth.
The institution was able to record high profits from its purchase a few months ago, which experts linked to the most anticipated surge. Nasdaq also mentioned that MicroStrategy seeks more avenues to get funds for its extensive digital asset purchases.
When the company first took its Bitcoin journey, it planned to have the long-term asset, and till now, the company remains true to its earlier proposal. The company will keep holding and buying more Bitcoins to act as a hedge and explore a different but reliable asset class.
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