MicroStrategy, the largest publicly traded business intelligence company, just purchased an additional $175 million worth of Bitcoin, bringing their overall BTC purchase total to a whopping $425 million.
Michael Saylor, MicroStrategy’s chief executive, says the company has now purchased 38,250 Bitcoin in total.
On September 14, 2020, MicroStrategy completed its acquisition of 16,796 additional bitcoins at an aggregate purchase price of $175 million. To date, we have purchased a total of 38,250 bitcoins at an aggregate purchase price of $425 million, inclusive of fees and expenses.
— Michael Saylor?? (@saylor) September 15, 2020
MicroStrategy announced its initial $250 million BTC investment in August, arguing in a press release that Bitcoin is a better store-of-value asset class than fiat currencies, especially given the slate of recent pandemic-related financial stimulus measures implemented by governments around the world. The firm now views Bitcoin as “the principal holding in its treasury reserve strategy.”
Saylor tells CoinDesk that the $425 million BTC buy is a long-term, multi-generational investment.
“This is not a speculation, nor is it a hedge. This was a deliberate corporate strategy to adopt a Bitcoin standard.”
Saylor also notes that MicroStrategy began to view cash as a potentially costly storage method for surpluses. He says Bitcoin and stock buybacks are the only two quality places to direct excess funds.
“We just had the awful realization that we were sitting on top of a $500 million ice cube that’s melting.”
MicroStrategy operates out of Virginia. The firm says its total revenues for the second quarter of 2020 were $110.6 million, with gross profit at $86.6 million.
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