With a simplistic approach to the markets, MicroStrategy has declared its business model an easy step process to the market. Sell their software, accumulate as much profit and then store that value but here’s where MicroStrategy differs in approach, they believe to store value not in Dollars, but Bitcoin. CEO of MicroStrategy, Michael Saylor, has certainly backed up his claim by announcing that the company had purchased a further 362 Bitcoin (BTC) with a market value of roughly $15 million.
This is a clear indication that Saylor and others at MicroStrategy firmly believe the actual price in Dollars pales in comparison to the amount of Bitcoin gained, and it would seem they are steadfast in purchasing Bitcoin at any value. The reasoning for this move seems to be clear, Saylor believes the greatest store of value currently available is in Bitcoin investments over that of the traditional US Dollar.
During an interview on CNBC with anchor Melissa Lee approach the end of 2020, Melissa questioned Saylor if MicroStrategy was a software company or merely a Bitcoin hedge?
Saylor was adamant in stating that they do own a software company that makes profit. He continued by doing the usual and storing profits in Dollars or other fiat currencies, they would “allow it to debase at 15percent per year” which if correct would indicate loss of value on a balance sheet.
With a confirmed holding of 90,500 BTCs, MicroStrategy has been purchasing their BTC in $10million to $15million increments. During the early period of March, it is believed that the firm purchased 328 BTC for $15million on the 1st, with an additional 205 BTC for $10million on the 5th, with the most recent purchase of 362 BTC for $15million on the 12th.
As such a public known buyer of Bitcoin seems certain on purchasing ever increasing quantities of the cryptoasset, it remains to be seen if others will be adopting to this new strategy.