Bitcoin becomes MicroStrategy’s currency of choice

Known for its particular interest in crypto, MicroStrategy has just announced the purchase of an additional 5,445 BTC for an amount of $147 million. This acquisition brings the software company’s total holdings to 158,245 BTC. Importantly, this makes MicroStrategy the largest holder of Bitcoin among publicly traded companies.

MicroStrategy is betting everything on Bitcoin

MicroStrategy has always considered Bitcoin as a strategic asset. In one of his statements, its CEO Michael Saylor even goes so far as to say that BTC will become a global store of value by 2031.

As a reminder, MicroStrategy’s first Bitcoin investment was in August 2020 while the price of BTC was valued at around $10,000. Since then, MicroStrategy has taken advantage of price drops to buy even more BTC. To do this :

• either it uses its own funds,
• or it issues convertible bonds.

How does MicroStrategy use BTC?

MicroStrategy does not use Bitcoin as a medium of exchange. She uses it more like a long-term digital asset. In other words, MicroStrategy keeps his assets Bitcoin in secure crypto wallets, without lending or selling them.

In reality, Bitcoin offers MicroStrategy considerable advantages. Since she multiplied her BTC holdings for example, MicroStrategy increased its net worth. The latter now exceeds 6 billion dollars. Such an approach also allows it to diversify its portfolio, thus reducing its dependence on traditional markets.

But of course, MicroStrategy is also significantly exposed to price fluctuations in the Bitcoin market. In August of this year, for example, the company had a loss of $2.23 billion.

MicroStrategy is undoubtedly a global leader in Bitcoin. The company has always been able to benefit from the boom in BTC. As a crypto asset, however, it requires rigorous management and a long-term vision. Will MicroStrategy therefore succeed in maintaining its position as a Bitcoin pioneer? The future will tell.