Bitcoins have seen a lot of criticism at the same time a lot of people supporting the value and boosting the price of bitcoins and aggressively investing into it. Elon Musk is one of the well known person who has done it and also been criticized for it. In this article let’s look at, Why MicroStrategy holds more than 100,000 bitcoins that is worth more than USD 3 billion.
MicroStrategy – Latest News
About MicroStrategy
How MicroStrategy got Hit after the Purchase of Bitcoin
How the purchase of bitcoins benefited MicroStrategy
How did Michael Saylor responded to the purchase of bitcoins
FAQ
MicroStrategy – Latest News
MicroStrategy is estimated to hold bitcoins of over 100,000 in pieces that are worth more than USD 3 billion after a recent purchase from the company. The company is said to have spent around USD 489 million in order to purchase around 13,005 tokens.
About MicroStrategy
MicroStrategy is a Virginia based software company that was incorporated in the year 1989. The company provides cloud based services, mobile software and business intelligence. The firm focuses on making business decisions and making mobile apps by developing software and analyzing the internal and external data.
It is a Public Limited company that is listed on Nasdaq and S&P 600. The primary competitors of the company in the Analytics field include SAP, Oracle and IBM congos. The company employs around 1997 members.
How MicroStrategy Shares got Hit after the Purchase of Bitcoin
On 21 June 2021, the shares of the company had seen a fall of around 9.7%. The fall is expected to be a mirroring of the fall that had happened with the bitcoin price where the digital coin had seen a downfall of over 7% which is around USD 32,600 per token.
MicroStrategy has conveyed that the average purchase price of its bitcoins of 105,085 tokens is around USD 26,080 per token. This amount was inclusive of the fee and other expenses incurred during the purchase. As of 21 June 2021, the holdings of the company were worth more than USD 3 billion.
Alan Joseph
How the purchase of bitcoins benefited MicroStrategy
The company has claimed that due to the purchase of bitcoins and the returns generated through it the company which was wiped off or not even recognized on Wall Street has become very popular and well known in the field and the crypto community after the dot com crash.
This is mainly due to the aggressive investment into bitcoins by the CEO and Chairman of the company Michael Saylor. The CEO is known for posting regular tweets about bitcoin on Twitter and has around 1 million followers on the micro blogging platform.
How did Michael Saylor responded to the purchase of bitcoins by MicroStrategy
Michael Saylor, In a recent interview defended the investment by the company made into bitcoins by issuing a debt instrument, to which most people didn't agree with. He conveyed in the interview that the company could rotate the shareholder base and was able to sell enterprise software and later on acquire and hold bitcoins with the income and he added that the company has done it successfully using the leverage.
He also said that this strategy has been driving the business and the power of the brand by a factor of 100. He also stated that they had the best quarter compared to the last 10 years and stated that the revenue of the company had seen an increase of 10% year on year.
He added that the business of bitcoin is driving the returns of the shareholders and said that the shareholders are happy and the employees of the company are happy too.
Alan Joseph
Conclusion
The CEO and Chairman of MicroStrategy, Michael Saylor has and will always be one of the promoters of bitcoin and recently had said in a press release that he is happy and thrilled about the decision made by El Salvador in order to accept bitcoin as a legal tender in the country. He added that he thinks that it is a good thing.
FAQ
What does MicroStrategy company do?
MicroStrategy provides a platform that enables departments and enterprises to deploy web-based reporting and analysis solutions. MicroStrategy also offers consulting, training, and support services.
Who is the CEO of MicroStrategy?
Michael J. Saylor is the CEO of MicroStrategy.
Why is MicroStrategy stock so high?
Shares of MicroStrategy soared because the price of Bitcoin is also soaring. As MicroStrategy owns quite a few Bitcoins, so it benefits when the price is rising.
Author: Alan Joseph
Source : https://startuptalky.com/microstrategy-bitcoin-purchase-explained/
Date : 2021-06-23T09:06:38.000Z