Continuous purchase of Bitcoin for MicroStrategy

When it comes to buying bitcoin, especially institutional purchases, Michael Saylor’s MicroStrategy always has its place in the discussion. Given that Saylor himself is a well-known Bitcoin (BTC) evangelist, how could his business intelligence firm fall behind in buying the top cryptocurrency?

In September 2022, MicroStrategy announced the sale of its shares with the intention of raising capital to buy more bitcoins. The company was reportedly willing to raise $500 million to fulfill the plan.

Rarely does a company have such an aggressive attitude in buying major cryptocurrencies compared to MicroStrategy. The company said that for the purchase of bitcoin at that time, shareholders would be responsible for managing the expenses.

When in September, in its stock sale filings, MicroStrategy released its balance sheet in which the company noted that its total bitcoin holdings consisted of 129,677 BTC. At the time, the total stash of BTC was valued at $3.78 billion based on the current cost of bitcoin.

Following the share sale, the $500 million fund raised was expected to buy around 22,500 bitcoins given the price at the time. This would end up making a roughly 17% increase in bitcoin holdings at the time.

MicroStrategy BTC Holdings crossed the 130K mark!

After a few days, MicroStrategy reported that it had bought 301 bitcoins worth 6 million, bringing bitcoin holdings to over 130,000 BTC in total.

MicroStrategy has one of their featured corporate strategies for buying bitcoin. It goes along with the core business of being a business analytics company. This is because the company follows the notion of CEO and co-founder Michael Saylor. Think of Bitcoin as one of the crucial and effective hedging options against runaway inflation. As the crypto market matures in the future, the leading cryptocurrency will also strengthen over time and this will be reflected in its value.

During the August Q2 earnings call, Saylor said the ongoing wave of cryptocurrency rationalization, coupled with regulation and innovation, could prove healthy for the industry in its infancy. It could improve over time both in the medium and long term.

Is MicroStrategy at an extreme?

In a nutshell, if Bitcoin is going to see significant growth in the coming times, then MicroStrategy will also enjoy its share of the success given its heavy investment in the leading crypto asset. However, the year has been quite a stressful one for the cryptocurrency market, both for cryptocurrencies and for cryptocurrency investors.

Since cryptocurrency prices were at fairly low levels, it would only be good from a buyers perspective. So if Michael Saylor and MicroStrategy’s bitcoin strategy has any chance of working in the future, then the year could become the time for massive wealth accumulation. On the contrary, if things go wrong, it could be remembered as one of the most costly mistakes.

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