Microstrategy Chief Executive Officer Michael Saylor has announced that his company has purchased a new batch of bitcoin, on top of its already large 100,000-plus bitcoin inventory.
The company has bought another 5,050 bitcoin, pushing its total BTC holdings to exactly 114,042 bitcoin (worth $3.6 billion at today’s pricing).
Microstrategy has bought its new batch of bitcoin for around $242 million, with an average price of $48,099 per BTC.
The company, even with all the dips that are happening in the crypto market, has maintained its position not to sell its bitcoin assets.
In fact, even with numerous crashes, it has continued purchasing the crypto, focusing on its goal of increasing its BTC asset even further. Its founder is a known bitcoin advocate and also has personal bitcoin assets of his own.
Abandoning traditional assets
It appears that the business intelligence and mobile software company is going all-out on the digital asset, abandoning assets that companies traditionally hold.
Data show that Microstrategy’s newfound bitcoin venture might be very rewarding for the company. Since crypto has outperformed gold by at least 200% year over year for the past couple of years, the company’s heavy investment in the leading crypto has a high possibility of bearing impressive results for the company.
Gold becoming old
MicroStrategy has already invested around $2 billion in its bitcoin purchase and has appreciated by over 376%.
If the company invested its $2 billion in traditional assets like gold, it would have lost 80% of its value, because gold has given negative returns on investment in the past year.
In other words, any investments in this shiny metal would certainly not equate to shiny results, but in a loss. And the company has obviously seen this trend, compelling it to move away from gold and invest in bitcoin instead.
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