The Virginia based software firm, MicroStrategy Inc., headed by outspoken Bitcoin CEO Michael Saylor, has spent an additional $177m with an acquisition of 3,907 BTC.
This is the latest in a string of large acquisitions made by the company in 2021.
MicroStrategy has purchased an additional 3,907 bitcoins for ~$177 million in cash at an average price of ~$45,294 per #bitcoin. As of 8/23/21 we #hodl ~108,992 bitcoins acquired for ~$2.918 billion at an average price of ~$26,769 per bitcoin. $MSTRhttps://t.co/8jUlJImJbO
— Michael Saylor⚡️ (@michael_saylor) August 24, 2021
Saylor’s twitter post indicated that the company now has 108,922 BTCs (worth about $2.9 billion) — averaging $26,769 in buy-in costs. The business currently has more Bitcoin in the globe than any other publicly listed company.
Microstrategy’s Bitcoin Binge
The news, however, was not completely unexpected with Saylor’s confirming tweet to purchase additional Bitcoin, as set forth in his Q2 Microstrategy financial report. Earlier this year, Microstrategy started a series of purchases of Bitcoin.
First Saylor announced a senior secured loan, soon followed by the issuance of the first BTC bond in the world, which was successful in raising $500m in cash. The CEO then moved to equity finance with a third attempt to raise money and saw the company file with the SEC for a $1 billion stock list.
Saylor has split the crypto community into his Bitcoin maximalist ideology based on the notion that Bitcoin is the greatest preservation of wealth. The MicroStrategy trading premium is regarded by some odd experts as a sign of overvaluation. If the price of BTC declines considerably, the BTC accumulation exposes MicroStrategy to enormous bankruptcy risk.
Saylor maintains that the premium is optimistic and justified by BTC’s capacity to acquire money and loans with zero interest and large-scale acquisitions. MicroStrategy remains engaged in the software area of enterprises, enabling them to generate huge debts.
Who is Michael Saylor?
Michael Saylor is CEO of the MicroStrategy business analytics software company. One of the best-known Internet bubble participators, Saylor was a multibillionaire due to his involvement with MicroStrategy in the late 1990s.
He dropped from the ranks of a billionaire when dubious accounting resulted in a re-establishment of financial performance. Thanks to timely Bitcoin investments, he’s a billionaire again. He personally acquired 17,732 bitcoins for $175 million in October 2020. Throughout 2020, he directed the corporate coffers of Microstrategy into Bitcoin, utilizing cash and borrowings for companies to purchase 70,784 Bitcoins for $1.1 billion.