MicroStrategy is the institutional player of the year. Despite purchasing more than $400 million in bitcoin over the past few months, the company is clearly not done. In a recent statement, the company issued plans to raise an additional $400 million in the coming future to potentially purchase even more units of the world’s number one digital currency by market cap.
MicroStrategy Wants Even More Bitcoin
The firm has developed a solid thirst for bitcoin that initially began in August. At the time, bitcoin was making its way past the $12,000 mark for the first time in roughly one year. The currency was doing better than it had been all year, and executives at the company could feel the pressure to get involved in crypto mounting.
As a result, they purchased more than $250 million worth of the world’s number one digital asset. However, a bearish September rolled in the following month – which is typical – and brought bitcoin down by about $2,000 to the low $10,000 range. This ultimately lowered the amount of money MicroStrategy was holding at the time by a significant margin, but this didn’t deter executives from getting their hands on more.
That month, the company purchased more than $150 million worth of additional bitcoin, thereby bringing the amount it had beyond the $400 million mark. This was the same amount of bitcoin lost by the Mt. Gox exchange in Japan roughly six years earlier. MicroStrategy felt confident that bitcoin would turn itself around and that it was the asset of the future.
They were right to feel this way considering it wasn’t long after that bitcoin rose to the $13,000 mark following news that PayPal would soon allow its customers to purchase digital assets through its platform and pay for goods and services with cryptocurrency. From there, continual rises were in store for the digital currency until it finally topped $19,000 a few weeks ago and even set a new all-time high for itself, beating out what it initially accomplished in December of 2017.
Overall, MicroStrategy had made quite a bit of money betting on bitcoin, but it wasn’t quite ready to stop yet. The company then bought roughly $50 million worth of additional bitcoin for more than $19,000 per unit. It now wants to raise money to buy even more. Clearly, this is no longer just a thirst for bitcoin, but rather an obsession, and MicroStrategy is out there to prove that everyone should be taking cryptocurrency seriously.
Trying to Remain Financially Sound
CEO Michael Saylor says that he’s no longer confident in the dollar considering the U.S. government is potentially overprinting money and putting fiat currencies at risk. He commented in a recent interview:
What we’re trying to do is preserve our treasury. The purchasing power of the cash is debasing rapidly.