MicroStrategy announced a new Bitcoin purchase with more than $650 million in value. The company has bought a considerable amount of Bitcoin in 2020 and increased investment in the cryptocurrency sector. They believe in the future of Bitcoin and have raised a fund for investing more, too. According to the recent announcement, the total purchase of Bitcoin in 2020 by MicroStrategy is about $1B in value.
Leading the Institutional Investment Move
Institutional investors have always been vital in the cryptocurrency ecosystem. They bring lots of money from the fiat world to the cryptocurrency sector. Most of the regular users follow these big investors. Their investments somehow encourage other enterprises and individual users to enter the cryptocurrency world. MicroStrategy has been one of the most active companies in 2020 in terms of Bitcoin investment. They have been busy buying Bitcoin as an investment and even plan to increase it more.
The recent announcement from MicroStrategy says the company has bought an additional 29,646 Bitcoins recently. It increases their Bitcoin purchase in 2020 to more than $1B in value. MicroStrategy’s current Bitcoin holding is about 70,470 Bitcoins, which makes them one of the biggest institutional investors.
MicroStrategy execs believe in Bitcoin’s bright future as an investment. The company CEO, Michael J. Saylor, has recently encouraged Tesla’s Elon Musk to run his company’s transactions on Bitcoin blockchain. He said about the recent purchase:
“The Company continues to operate in accordance with its Treasury Reserve Policy and currently holds approximately 70,470 bitcoins. The acquisition of additional bitcoins announced today reaffirms our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value. We believe the proactive management of our balance sheet, combined with the improved revenue and profitability performance of the Company, have been significant factors in the recent appreciation in our stock price.”
Buying more Bitcoin is part of the investment policy in MicroStrategy. As an independent publicly-traded intelligence company, they want to lead the way for their customers, too.
Earnings from Bitcoin investment helps MicroStrategy find access to more capital. But their main focus is business intelligence software and tools. Phong Le, President & CFO, MicroStrategy Incorporated, said:
“As we work to grow revenue through HyperIntelligence®, Cloud Intelligence™, and Embedded Intelligence™ offerings, the Company expects to continue to generate positive operating income and free cash flow and will continue to evaluate the use of excess cash in accordance with our capital allocation strategy and Treasury Reserve Policy.”
If you found this article interesting, here you can find more Bitcoin news
