The blockchain space has always talked about the importance of institutional investor adoption, and MicroStrategy seems to be the leader of the pack that the ecosystem was hoping for.
As both Saylor and MicroStrategy see it, Bitcoin is a strong store of value and hedge against inflation that will likely outperform the dollar long-term.
According to Bitcoin Treasuries, MicroStrategy currently owns almost 41,000 bitcoins worth around $777 million and has unrealized gains of $300 million on its investment.
MicroStrategy Hungry for More Bitcoin
MicroStrategy recently announced a new private offering to investors for the sum of $400 million. These convertible senior notes will be offered to qualified investors, and the proceeds, as asserted in its statement, will be used to purchase more Bitcoin for its treasury.
Specifically, MicroStrategy stated;
“MicroStrategy intends to invest the net proceeds from the sale of the notes in Bitcoin in accordance with its Treasury Reserve Policy pending the identification of working capital needs and other general corporate purposes.”
This is massive news as MicroStrategy is essentially doubling down on its initial Bitcoin investment of $475 million.
Implications for the Blockchain Space
In order for Bitcoin to become a truly dominant global financial player, it needs to be accepted not only among everyday users but also among major financial institutions and decision-makers.
Retail investors can help build the community and have been an extremely crucial part of the digital asset’s success so far. But, to take it to the next level where it competes as a global store of value, it needs to be accepted and viewed more positively by institutions.
Although not the first major institution by any means to invest in or utilize blockchain technology, MicroStrategy and Michael Saylor are redefining what a proper treasury can look like among major institutions.
For Saylor, the risk-reward ratio of purchasing Bitcoin is obvious; as he has clearly stated. Saylor thinks that even if a company invests 10 percent of its treasury into BTC, a 50 percent decrease in value will not have a significant effect on operations. On the other hand, if it increases by five-to-10 times or more, it will be a major game-changer.