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MicroStrategy continues to accumulate resources, this time buying 2,574 Bitcoins

Michael J. Saylor, co-founder, president and chief executive officer of MicroStrategy, a Nasdaq listed business intelligence company, revealed that his company had purchased more Bitcoins.

On August 11, MicroStrategy announced in a press release that it had “purchased 21,454 bitcoins at an aggregate purchase price of $ 250 million” to use as a “primary treasury reserve asset”.

Saylor said at the time:

“Our decision to invest in Bitcoin at this point was driven in part by a confluence of macro factors that affect the economic and business landscape that we believe is creating long-term risks for our corporate treasury program – risks that must be addressed proactively. .

“These macro factors include, among other things, the economic and public health crisis precipitated by COVID-19, unprecedented government financial stimulus measures, including quantitative easing adopted worldwide, and global political and economic uncertainty.

“We believe that together, these and other factors can have a significant detrimental effect on the real long-term value of fiat currencies and many other types of conventional assets, including many of the assets traditionally held as part of corporate treasury operations.”

Then, on September 14, MicroStrategy disclosed by filling out a “Form 8-K” that it had adopted a new Treasury Reserve Policy, as a result of which its holdings in Bitcoin “could increase beyond the $ 250 million investment that the Company released on August 11, 2020. ”

The next day, Saylor provided an update on your company’s investment in Bitcoin.

On October 27, MicroStrategy had its third quarter 2020 earnings call. According to the transcript (provided by The Motley Fool), Saylor (company CEO) and Phong Le, company president and CFO, were there to provide analysts with additional insights into third quarter 2020 results.

Regarding Bitcoin, the president of MicroStrategy said:

“… During the quarter, we purchased approximately 38,250 bitcoins for an aggregate price of $ 425 million. This amounts to an average price of approximately $ 11,111 per bitcoin ”.

“In accordance with our cash reserve policy, you should expect that we will purchase additional bitcoins as we generate more cash than we need to manage business on a daily basis or to implement for other corporate purposes.”

Well now, it looks like the MicroStrategy invested more of its money in Bitcoin, this time buying 2,574 bitcoins at a cost of approximately $ 19,427 per bitcoin.

Source: cryptoglobe

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