It’s no secret that MicroStrategy owns around 0.5% of all Bitcoins. You might think that such a share would satisfy the company’s BTC needs. Unfortunately, apparently not. In fact, the CEO of Saylor often openly says MicroStrategy is looking to buy more BTC.
Moreover, he also made it clear that he did not want to sell the company’s shares either.
In fact, the company still owns 90% of its BTC purchases. How does this affect Bitcoin and the business?
Well, in a recent interview, Michael Saylor explained that Bitcoin is getting stronger as everyone joins it.
“We have a software company that generates large cash flows, so we convert these flows into bitcoins.”
In addition to cash flow, Saylor also claimed that the company issues both debt (borrows money from investors) and uses equity to buy Bitcoin. But why is MicroStrategy doing everything to invest even more in BTC?
“We are doing all of this because we believe Bitcoin is the best property in the world. If we can raise capital cheaply and invest in something that we believe will benefit our shareholders, we are doing it. “
MicroStrategy currently owns over 114,000 bitcoins, and Saylor reiterates that since “Bitcoin is a property,” there is no limit to purchasing it. This is completely contrary to the SEC limits that apply to a company that owns “40% of tangible assets as securities,” he explained.
Cryptanalyst Anthony Pompliano recently predicted that Michael Saylor may have a chance of becoming the first Bitcoin trillionaire with this strategy. He estimated that Saylor personally owns about $ 1 billion in Bitcoin and a 24% stake in MicroStrategy. Pompliano commented:
“The richest people in the world are somewhere in between now, let’s say 180-220 billion.”
However, he expects Saylor to make that leap along with the recognition of Bitcoin’s value. Meanwhile, in 2021, MicroStrategy stock outperformed Bitcoin by 4.25% from the start of the year. The company’s shares essentially make MicroStrategy a “Bitcoin company” whose stocks are valued higher than the stocks of tech giants like Apple and Facebook.
05-10-2021, Mr Advice TEAM