After attaining an all-time high of $58,330.57 on Feb 21, 2021, Bitcoin price dived for four consecutive days (something that the digital currency has not experienced over the last 4 months. It is currently trading just above 48,000.
But in what could appear as the race to which corporations owns the most Bitcoins, MicroStrategy®, which is the largest publicly traded intelligence company announced on February 24, 2021, that it had purchased an additional 19, 452 bitcoins worth approximately $1.026 billion. Meaning the company bought a single Bitcoin at an average of $52,765.
This throws the company ahead of Tesla, which had made public that it had purchased bitcoins worth $1.5 billion. As of February 24, 2021, Microstrategy’s aggregate Bitcoin investment was worth about $2.171 billion.
“The Company remains focused on our two corporate strategies of growing our enterprise analytics software business and acquiring and holding bitcoin,” said Michael J. Saylor, CEO, MicroStrategy Incorporated. “The company now holds over 90,000 bitcoins, reaffirming our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, can serve as a dependable store of value. We will continue to pursue our strategy of acquiring bitcoin with excess cash and we may from time to time, subject to market conditions, issue debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase additional bitcoin.”
“MicroStrategy remains dedicated to our enterprise analytics customers and our goal of operating a growing profitable business intelligence company,” said Phong Le, President & CFO, MicroStrategy Incorporated. “We believe our bitcoin strategy, including our bitcoin holdings and related activities in support of the bitcoin network, is complementary to our software business, by enhancing awareness of our brand and providing opportunities to secure new customers.”
Is Bitcoin creating a perfect opportunity for more corporations to get on board?
Bitcoin has already proved its price can go as high as it wants. Recently after Tesla Inc. made their purchase of the cryptocurrency public, the coin surpassed a market capitalization of $1 trillion with its price getting only $670 shy of $59,000.
Therefore, any corporation looking to make quick profits can get on board the ship, especially now that the coin has moved lower to provide a stepping platform for the corporation and whales to get on board.
Just for example, if a company bought 5,000 Bitcoins at the current price of $48,721.94, it would only spend about $243.6 million. And if the digital currency gets back to $58,000, the company would be worth $46.395 million richer. And going per the current standing, we could be witnessing another bullish rally very soon once the retracement is over if the ‘bubble’ has not yet busted.
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