MicroStrategy; meet the company with the most bitcoins

Briefly about MicroStrategy

MicroStrategy is the largest independent public analytics and business intelligence company. It was founded in 1989. and is headquartered in Tysons Corner, Virginia, USA. The company offers software solutions for data analysis, reporting, mobility and security. In addition, MicroStrategy is one of the first and largest corporate buyers of Bitcoin, a digital asset they consider a reliable repository. MicroStrategy began buying Bitcoin in August 2020. He has accumulated about 152,800 bitcoins so far, which he bought at an average price of about US$29,672 per bitcoin. The total value of their Bitcoin portfolio is about $3.5 billion at the current market price. MicroStrategy finances its Bitcoin purchases mainly with cash, but they also have some debt that also served to buy bitcoin, and recently the company announced the sale of $750 million worth of shares to use the collected money for additional bitcoin accumulation.

Source: cointelegraph

Michael Saylor CEO of MicroStrategy

Michael Saylor is the founder and CHIEF EXECUTIVE OFFICER of MicroStrategy. He is also known as one of the biggest proponents of Bitcoin. Saylor founded MicroStrategy in 1989. He was one of the richest men during the internet stock bubble in the late 1990s thanks to his stake in MicroStrategy. However, his wealth declined drastically after questionable accounting led to a revision of financial results and the bursting of the dot-com bubble. In October 2020. He personally bought 17,732 bitcoins for $175 million. during 2020. In 2001, it directed MicroStrategy’s corporate policy towards bitcoin, using cash and company debts to buy 70,784 Bitcoins for $1.1 billion. Interestingly, Saylor had long known about Bitcoin, but was not a supporter of Bitcoin, but criticized it as a failed currency to be replaced by newer and better digital money systems. However, he changed his mind during the coronavirus pandemic, when he realized that Bitcoin has unique advantages as digital gold that can preserve value in volatile times. Since then, he has become an avid advocate of Bitcoin and its potential to become a “world currency” for the entire global financial system.

Source: cointelegraph

Selling shares to buy bitcoin

One way MicroStrategy finances its Bitcoin purchases is by selling stocks in the market. This strategy allows the company to take advantage of the high price of its stock, which has risen greatly due to their Bitcoin strategy, and to convert part of its market capital into Bitcoin. However, this strategy also reduces the value of existing shares and shifts the cost to existing shareholders. MicroStrategy already implemented this strategy in September 2020. In 2001, $500 million of shares were sold to buy more Bitcoin. Recently, the idea was re-floated and the sale of another $750 million worth of shares was announced with the same intention. The company apparently believes that bitcoin’s long-term value will outweigh the potential loss from the stock sale.

Source: cointelegraph

The impact of MicroStrategy on the public

MicroStrategy not only invests in Bitcoin, but also actively educates the public about the benefits and potential of this digital asset. The company organizes various webinars, podcasts and conferences where it shares its experience and knowledge of Bitcoin with other businesses, investors and individuals. Some examples of such events are:

  • Bitcoin for Corporations: a two-day online event that took place in February 2021. MicroStrategy introduced its Bitcoin strategy and provided practical tips and tools for buying, holding and accounting for Bitcoin as a corporate asset.
  • MicroStrategy World: an annual user conference that brings together thousands of business intelligence and analytics professionals from around the world. At the 2021 conference. In 2009, which took place in January, MicroStrategy paid special attention to Bitcoin and its role in the future of business.
  • The Saylor Series: a podcast series hosted by Michael Saylor. In these podcasts, Saylor talks to various guests about Bitcoin-related topics, such as its history, technology, economics, security, philosophy, and social impact.

These events show how MicroStrategy not only uses Bitcoin as a financial asset, but also as a platform for innovation and education. The company seeks to raise awareness of Bitcoin and encourage its wider acceptance and use.

Source: cointelegraph

Implementation and role of Bitcoin in microstrategy business

Primarily MicroStrategy decided to use Bitcoin as its primary asset to reserve treasury, rather than holding cash or other traditional forms of value. The company considers Bitcoin to be digital gold that has unique strengths such as limited supply, global distribution, decentralized security, and inflation and devaluation resilience. The role of Bitcoin in MicroStrategy’s business is multifaceted. On the one hand, Bitcoin serves as a hedge against the loss of purchasing power of cash and other forms of assets. On the other hand, Bitcoin allows the company to capitalize on the growing demand for digital assets. Also, Bitcoin encourages innovation and the development of new products and services that are based on or are compatible with Bitcoin technology. Finally, Bitcoin increases the company’s visibility and reputation as a leader in business intelligence and analytics, and as an advocate of digital transformation.

Source: cointelegraph

Conclusion

In this blog, we presented microstrategy and their Bitcoin strategy. We’ve seen MicroStrategy use Bitcoin as its primary asset or currency, how it finances its Bitcoin purchases, how it attracts new investors and clients, and how it educates the public about the benefits of Bitcoin. We also met Michael Saylor, founder and CHIEF EXECUTIVE OFFICER of MicroStrategy, who is one of bitcoin’s biggest advocates. We learned how he changed his mind about Bitcoin during the coronavirus pandemic and how he steered his company towardS Bitcoin. We hope you enjoyed this blog and learned something new about MicroStrategy and Bitcoin. If you want to learn more about these topics or share your opinion with us, you can do so by visiting us on our social networks (Twitter, Instagram).