- MicroStrategy added 3,097 Bitcoin to its balance sheet.
- The company is a veteran Bitcoin investor.
- After the latest purchase, the stock of the company declined in value.
YEREVAN (CoinChapter.com) – Microstrategy (MSTR) stock dipped 3.5% in the early trading hours in New York as traders assessed the bullish intelligence company’s acquisition of $177 million worth of Bitcoin.
Michael Saylor, the chief executive of MicroStrategy, announced on August 23 that they had acquired an additional 3,907 Bitcoin (BTC).
MicroStrategy’s Bitcoin romance
Mr. Saylor is an outspoken crypto supporter and a renowned Bitcoin holder. Moreover, Microstrategy is one of the early investors in the flagship cryptocurrency. The company now holds 108,992 Bitcoin that it acquired for $2.918 billion at an average purchase price of $45,294—around 7 percent lower than the current value.
Microstrategy’s first investment in Bitcoin came in August 2020, when the CEO decided to entrust $250 million into the alpha crypto. Shortly after, he doubled down by putting an additional $175 million worth of BTC into Microstrategy’s balance sheet. Next, Mr. Saylor commented on Bitcoin’s advantages over storing cash.
“[Bitcoin is] a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash. […] It is harder, stronger, faster, and smarter than any money that has preceded it.”said the CEO.
He has been known to post rather poetic tweets about Bitcoin, as well.
MSTR stock declines
Since August 2020, the MSTR stock price has grown by 475 percent. Therefore, it is possible that the current setback is temporary and will not result in any long-term losses.
When MicroStrategy first started piling on BTC coins, it used the cash on its balance sheets. However, the company has since turned to the debt market to fund its Bitcoin purchases.
The Nasdaq-listed company faced both criticism and support for the CEO’s decision. Some users on Twitter were concerned about the harm the accumulation could do to the decentralized nature of Bitcoin.
Anthony Pompliano, an investor, entrepreneur, and avid crypto supporter, applauded the decision.
MicroStrategy CEO remains firm on his stance, as he demonstrated in a recent interview with CNBC.
“I mean, if I could borrow $1 billion and buy Facebook a decade ago for 1% interest, I think I would’ve done quite well,”Mr. Saylor asserted.