MicroStrategy has confirmed that in the future the company may acquire additional digital coins, increasing its reserves of Bitcoin. MicroStrategy released its first quarter 2021 financial report which states that MicroStrategy may continue to buy Bitcoin. Total revenue for the first quarter was just over $ 122 million, up 10.3% over the same period in 2020.
As we can see, the company’s income has already grown many times over thanks to this asset. Consequently, the subsequent purchase of Bitcoin, the company is sure, will lead to an increase in revenue up to 52%. Recall that at the moment the company owns more than 91.5 thousand Bitcoins (BTC) and is the largest holder of cryptocurrency among companies whose shares are publicly traded on the stock market.
On average, MicroStrategy paid about $ 24,119 per Bitcoin.
Also during the recent correction, MicroStrategy bought another 205 BTC for below $ 50,000.
The head of MicroStrategy, Michael Saylor, focuses on buying Bitcoins and their long-term accumulation in the balance of the organization. Moreover, the head of MicroStrategy himself is a major investor in Bitcoin.
Michael Saylor’s acumen
Public company MicroStrategy quickly burst into the life of the bitcoin industry last year when it began buying up the first cryptocurrency. First, on their own, and then on borrowed funds.
Many see this as a forward-looking bet on the scarce properties of bitcoin and praise the investment acumen of Michael Saylor.
Recently, the information space has exponentially increased the number of enthusiastic opinions regarding the “massive arrival of institutionals” in cryptocurrencies, primarily in Bitcoin. MicroStrategy, Tesla, Square became financial news headliners. Deliberately don’t include Grayscale here, since they cannot be called an investor. This is a trust that keeps other people’s money and doesn’t buy anything on its own.
Bitcoin – the main reserve asset of MicroStrategy
The CEO of the company, Michael Saylor, noted that the purchasing power of fiat money is falling rapidly, and therefore, in order to protect their treasury, they want to keep money in Bitcoin.
In August, MicroStrategy announced that it will use Bitcoin as the Treasury’s primary reserve asset. “This investment reflects our belief that Bitcoin, as the world’s most widely used cryptocurrency, is a safe store of value and an attractive investment asset with longer-term growth potential than holding cash”, CEO Michael Saylor said at the time.
Since then, MicroStrategy has acquired over $ 1 billion worth of Bitcoin.
Many investors turn to Bitcoin to protect their wealth from the devastating effects of inflation. Due in part to the limited supply, people began to view Bitcoin as a form of digital gold. Gold, due to its scarcity, tends to work well when central banks print large amounts of currency. Some investors believe that Bitcoin can serve a similar function. As governments around the world print their currencies at historically high rates in hopes of boosting their economies, the price of Bitcoin may continue to rise. MicroStrategy and Grayscale Bitcoin Trust can grow with this.