MicroStrategy CEO Michael Saylor announced in a Tweet on Dec. 4 that the company bought about 2574 bitcoins.
The company reported the purchase,at an average price of about $19,427, with the United States Securities and Exchange Commission (SEC). In the Form 8-K filing, MicroStrategy also disclosed that it currently holds approximately 40,824 bitcoin. The total price of the bitcoin purchases was $475.0 million.
Unreserved love for BTC reserves
In the Tweet, Michael Saylor states that the bitcoin purchase was for the company’s reserves. The question is how the market perceives such statements.
Saylor claims that holding corporate reserves in cash is unwise. He says that inflation and pandemic-related quantitative easing eat away at the value of fiat currencies. He is also on the record for saying that Bitcoin will do more than merely replace gold.
“When the Bitcoin Dragon emerges from its lair, the first thing it will eat is the Kingdom of Gold.”
Rewarded by the market
Investors seem to agree with Saylor’s strategy. Even though he insists that the company is still software-focused, it gains a lot of publicity for this way of handling reserves. At the end of November, Citron Research published a report calling MicroStrategy, “the best way to own bitcoin in the stock market.”
MicroStrategy hit all-time-highs on the stock market over the past week. It closed at $328.00 on the NASDAQ on Friday, after reaching $346.60 on Dec. 1. A quick comparison shows what investors are thinking. Before the company began the BTC purchases for its reserves in August 2020, the stock price had not reached over $160 since mid-2017.
Saylor’s announcement came after the Friday close. It remains to be seen how the market will react to the company buying more bitcoin.
Note to self: buy BTC
Michael Saylor also holds bitcoin personally. At the end of October, he revealed his own investment portfolio. His holding at the time included more than 17,730 BTC.
Trusted
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
