In recent years, Microstrategy has made a name in the crypto space. It has done so by being extremely bullish on Bitcoin. With Michael Saylor at the helm, has been buying $BTC on the regular. With this, the crypto community recognizes Microstrategy and Michael Saylor as prominent Bitcoin Bulls.
In the first part of this two-part article series, we’re going to discuss what Microstrategy is. On top of that, we’ll also take a look at why it regularly buys $BTC. Lastly, we’ll sneak a peek at its total $BTC holdings. So, stay tuned to learn more!
Who Is Microstrategy?
In a nutshell, MicroStrategy is a company that provides business intelligence, software, and cloud-based services. To elaborate further, it creates software that enables the analysis of data for business decisions. It’s also a listed company, with ticker $MSTR on the NASDAQ stock exchange. MicroStrategy has been around way longer than Bitcoin. Today, the company employs over 2,000 employees and is well worth over $3 billion dollars.
Moreover, it was co-founded by none other than Michael Saylor back in 1989. Since the company’s founding, Saylor has served as its CEO up until last year, when he relinquished the position to Phong Le. However, he still acts as the Executive Chairman of the company.
Why Microstrategy Bought Bitcoin?
In short, Saylor sees Bitcoin as an effective hedge against inflation. He also views Bitcoin as “digital real estate”. To a certain extent, he’s right on this point. Bitcoin has a maximum supply of 21 million. So, its supply is scarce and can be likened to real estate.
But, that’s not all why Saylor is bullish. In fact, he believes that Bitcoin will become widely adopted in the future. He believes Bitcoin can realize its vision of being a peer-to-peer electronic cash system. Just like what Bitcoin was created for.
👊 The most eloquent argument on why #bitcoin is best for storing and moving wealth by Michael @Saylor pic.twitter.com/OmEBAzVe9g
— Lightning Network+⚡️ (@BTC_LN) May 11, 2023
The above quote justifies Saylor’s confidence in the future of Bitcoin. Yet, exactly how bullish is Saylor and MicroStrategy on Bitcoin? Are they all talk and no action? Let’s check out its $BTC holdings to answer this question.
How Many Bitcoins Does Microstrategy Own?
It turns out that both, Saylor and his company, mean what they say. For starters, let’s take a look at MicroStrategy’s holdings. As per the tweet below, the company holds a total of 140,000 $BTC, bought at an average price of $29,803. As of now, the holdings are worth a total of $3.84 billion. The company is sitting on a slight unrealized loss at the moment.
MicroStrategy has acquired an additional 1,045 #bitcoin for ~ $29.3M at an average price of $28,016 per bitcoin. As of 4/4/2023 @MicroStrategy holds 140,000 bitcoin acquired for ~$4.17 billion at an average price of $29,803 per bitcoin. $MSTR https://t.co/IBufTxalnv
— Michael Saylor⚡️ (@saylor) April 5, 2023
That’s not the case for Saylor personally though. Back in October 2020, Saylor disclosed his personal holdings of $BTC. He claims he holds 17,732 $BTC in his personal wallet, bought at an average price of $9,882. Assuming he has not sold or bought any more $BTC since then, he is in good unrealized profit.
Some have asked how much #BTC I own. I personally #hodl 17,732 BTC which I bought at $9,882 each on average. I informed MicroStrategy of these holdings before the company decided to buy #bitcoin for itself.
— Michael Saylor⚡️ (@saylor) October 28, 2020
Now, it’s all rosy if the company buys $BTC with its own cash reserves. However, Saylor has used convertible debt to buy $BTC for MicroStrategy. This is a risky move in our opinion. It is not a move that we would recommend for retail investing. You should only invest with money you’re willing to lose.
Nevertheless, it’s undeniable that both Saylor and MicroStrategy have a strong influence on Bitcoin. Not just in terms of being bullish advocates, but possibly market movers as well. In the second part of this two-part article series, we’ll answer more questions on MicroStrategy and its influence on Bitcoin. We hope you’ll look forward to it!
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