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MicroStrategy has recently converted large quantities of its cash assets to Bitcoin. In what is yet another bitcoin investing streak, the publicly traded firm is in the news today as it has bought more crypto assets. According to CEO Michael Saylor, the market analytics company has now acquired an extra 262 Bitcoins for approximately $15 million at an average price of approximately $57,146 per Bitcoin.
As of March 12, MicroStrategy ‘hodls’ are close to 91,326 Bitcoins, all of which have been bought for nearly $2,211 billion at an average price of $24,214 per Bitcoin.
Needless to mention, CEO Michael Saylor has been instrumental in the acquisition of Bitcoin by the firm. The CEO is an outspoken maximalist and predicts that someday the price of Bitcoin will appreciate to the point that the digital currency will have a “stabilising effect on the whole global financial system.”
The Bitcoin bull also claims that the currency is a stronger buffer against the possibility of monetary inflation than Gold. He has also argued that businesses need to add bitcoin to their balance sheets instead of keeping cash or precious metals and bonds. According to him, crypto helps companies to produce more long-term returns.
However, this digital gold story is not exclusive to the likes of Saylor or members of the crypto-community. Hedge theory has run down to companies such as BNY Mellon, Tesla, and a number of conventional businesses who have since opted to join the Bitcoin industry.
It would be fascinating to see how much more Bitcoin will acquire MicroStrategy under Saylor, provided that some of his projections have been very correct to date. For example, the CEO once predicted that Bitcoin’s market cap will rise to a trillion dollars. Ok, it just happened.