MicroStrategy
MicroStrategy shows more interest in buying Bitcoin (BTC) as the digital token continues to break new records. The software technology company’s debt offering is now $ 900 million and is being used to buy more bitcoin.
Bitcoin surged above $ 50,000 on Monday. The rally in digital tokens had caught the attention of major financial institutions and other companies. Last week, Tesla bought $ 1.5 billion worth of Bitcoin. In the meantime, MasterCard and Bank of New York said they will accept the digital token.
However, MicroStrategy was the first company to buy Bitcoin directly. The company raised $ 400 million in December to add to its bitcoin holdings. Michael Saylor, CEO of MicroStrategy, said Bitcoin was a hedge against inflation and a possible devaluation of the US dollar. The software development company’s currency owns over 70,784 bitcoin, valued at over $ 3.5 billion at the current BTC price.
MicroStrategy first bought Bitcoin for $ 16,000
When MicroStrategy’s closed its first Bitcoin deal, the digital token was trading at $ 16,000. Since then, Bitcoin has risen by over 736%. As a result, the company’s market valuation rose from $ 2 billion in August to over $ 10 billion as of now. Thanks to the Bitcoin bet, Michael Saylor, who owns 2.4 million shares in MicroStrategy, became a billionaire.
In an interview with Bloomberg Television, Michael Saylor, Chief Executive Officer of MicroStrategy Inc, said: “In an expansive monetary environment, you want tight assets. Bitcoin is the scarcest commodity in the world. It’s digital gold. “
“If we were to buy gold instead of bitcoin, we would have been down $ 2 billion. It would have been a disaster. Once people start thinking about what they want, what is a non-sovereign safe haven store of value, they will see that Bitcoin does the job of gold better and you will see all institutional flows moving out of gold into Bitcoin, ”added Saylor added.
Bitcoin can be a risky investment
Although the price of Bitcoin has been rising sharply since the beginning of February, the digital currency can be a very risky investment. The cryptocurrency market is very volatile and since Bitcoin is decentralized; The price of the token can drop dramatically. For example, Bitcoin fell from $ 17,000 to $ 3,000 in 2017 after a long rally.
Danyaal Rashid, Head of Thematic Research at GlobalData, wrote, “If Elon can help Musk get the price of this asset with a tweet or a major contract, it could also cause the price to drop again. The task of buying a vehicle shouldn’t be a speculative one. Consumers who may have thought of buying Bitcoin to replace fiat could very easily have more or less than they expected. “
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