MicroStrategy – Biggest Bitcoin Holder in the Corporate World
MicroStrategy isn’t just the corporate giant but also it is the reason why the corporate sector developed confidence in cryptocurrencies.
Back in 2021, MicroStrategy was, and still is, the world’s biggest Bitcoin investor from the corporate sector.
By the time 2022 reached, MicroStrategy alone owned a total of 130,000 Bitcoin units. Thereafter, the corporate giant had to stop investing in Bitcoin because of the deteriorating crypto market conditions, including Bitcoin.
It was MicroStrategy’s former CEO, Michael Saylor, who favored Bitcoin a great deal and insisted that the company should invest in Bitcoin.
Saylor is also the founder of MicroStrategy and is currently the Executive Chairman of it.
Fresh Acquisition of Bitcoins
On Wednesday, 28th December 2022, MicroStrategy had a big announcement to make. Just as the company made the statement, the entire Bitcoin community was excited.
The Bitcoin community now fully trusts the claims and promises made by MicroStrategy. This is the reason why they always find it exciting when MicroStrategy comes up with a new announcement.
They know whenever MicroStrategy addresses the cryptocurrency community, it has something to do with Bitcoin. People also know that the company will not go back on trusting Bitcoin.
Therefore, they are always confident that any announcement the firm is to make would work in favor of Bitcoin.
MicroStrategy revealed that it had recently acquired a total of 2,500 further Bitcoins. It further revealed that the company’s Bitcoin holding is now comprised of 132,500 BTC units.
As per MicroStrategy’s filing before SEC, a fresh lot of Bitcoins was acquired during the period commencing on 1st November till 24th December.
However, the latest acquisition was divided into two buying transactions. The first transaction comprised over 2,395 units of Bitcoin which were bought at a value of $17,871 per unit.
Thereafter, MicroStrategy bought another chunk of BTCs on 24th December which comprised over 810 units at a price of $16,845 per unit.
In the same period, the company however disposed of roughly 704 units of Bitcoin at a value of $16,776 per unit. This transaction of sale was executed on 22nd December 2022.
Profit and Loss Ratio
MicroStrategy has been buying Bitcoins for the past two to three years. During this period, Bitcoin prices were rising fast at a phenomenally high rate.
Currently, Bitcoin has been trading at $16,656.80. So far the company has injected roughly $4.03 Billion into the Bitcoin acquisition.
This means that each BTC unit owned by MicroStrategy costs around $30,397. It is obvious that MicroStrategy has been facing a loss but the company is optimistic about its investment in Bitcoin in the long run.
MicroStrategy’s first Bitcoin acquisition was recorded in the year 2020. However, since then the company had never disposed of a single unit until 22nd December 2022.
Hence, MicroStrategy selling Bitcoins came as a surprise to the majority who wanted to know the reason behind the sale. The company later explained in the 28th December announcement that the sale was due to tax purposes.
Saylor’s Remarks on Bitcoin
Saylor remarked that 2022 would hold historical value because in this year Bitcoin transformed itself into becoming an ‘institutional grade digital asset’.
He further suggested that there is no other cryptocurrency except Bitcoin which can be classified as a ‘commodity’.
He then referred to the findings of the Securities & Exchange Commission and Commodity Futures Trading Commission accepting Bitcoin as a ‘commodity’.
The Executive Chairman of MicroStrategy has long maintained his stance that MicroStrategy’s investment into Bitcoin is long-term.
He clarified that so far the company has not determined the target value at which it would be interested in selling BTCs.
He reiterated that MicroStrategy would act patiently because he and his company firmly believe that Bitcoin’s future value would be in the millions. Saylor also opined that the way he sees it, future money looks like Bitcoin.
