The American company MicroStrategy, known for its investments in cryptocurrency, plans to buy even more bitcoins. The CEO of the firm, Michael Saylor, announced this to his Twitter followers. The press release linked to Sailor states that MicroStrategy is satisfied with the results of its investment and plans to continue investing in cryptocurrency further:
We are satisfied with the results of our digital asset strategy implementation. <...> In the future, we intend to place additional capital in accordance with this strategy.
MicroStrategy owns over 105,000 BTC. She started buying cryptocurrency in August last year and has been trying to buy cryptocurrency on the strait ever since the opportunity presents itself. According to analytical data, in May, MicroStrategy owned 0.438% of the total volume of bitcoins in circulation and undoubtedly was and is at the moment the largest institutional holder of the first cryptocurrency.
Right after the first purchase, Sailor explained the rationale behind investing in bitcoin:
“This investment reflects our conviction that bitcoin, as the world's most widely used cryptocurrency, is a reliable store of value and an attractive investment asset with a longer-term upside potential than holding cash".
MicroStrategy uses Bitcoin for more than just an investment asset. In mid-April, it became known that the company's board of directors would receive bonus payments in bitcoins instead of regular money. MicroStrategy notified the US Securities and Exchange Commission about this.
The dramatic decline in the price of bitcoin in May forced the company to report losses. In the second quarter, MicroStrategy incurred $ 424.8 million in unrealized investment losses due to the decline in the price of the cryptocurrency. The cumulative loss was $ 299.3 million. In the second quarter of 2020, for comparison, the profit was $ 3 million.
The unrealized loss from investments in cryptocurrencies is visible only on paper and corresponds to a short period. Considering that the company is not going to sell bitcoins and bought some of them at a very low price, the total income from cryptocurrency investments amounted to more than a billion dollars.
The use of cryptocurrency is increasing day by day. Its use will be widespread in future generations.
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