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Bitcoin has been suffering heavily as of late. Yes, the currency has managed to touch $40,000 once or twice during the past week, but the asset is still considerably lower than where it was in April of this year – a time that saw the world’s number one digital currency hit a new high of roughly $64,000 per unit. Despite the gloom and doom surrounding BTC, MicroStrategy and its CEO Michael Saylor have no interest in turning their backs on the asset and have announced more plans to buy into the space.
MicroStrategy Is Still a Major Bitcoin Fan
MicroStrategy has long been the biggest institutional investor behind bitcoin. While it may not have the overall value of a company like Tesla – which purchased approximately $1.5 billion worth of the asset back in February – the company has bought the most bitcoin, and its journey into bitcoin purchasing began a year ago in August of 2020. At that time, the company got its hands on more than $250 million worth of BTC, making it the largest institutional purchase of BTC at that time.
Since then, the company has continued to buy and now owns more than $2 billion worth of the world’s primary digital asset. Sure, bitcoin has stumbled along the way – such as just a month after MicroStrategy’s first purchase in which one unit of BTC fell from $12,000 to about $10,000 – but the company has always been there to pledge support for the cryptocurrency, and Saylor has no plans of stopping now. He believes in bitcoin, and he’s practically betting his whole company on it.
In a recent interview, Saylor commented:
We continue to be pleased by the results of the implementation of our digital asset strategy. Going forward, we intend to continue to deploy additional capital into our digital asset strategy.
It can be argued that without MicroStrategy at the helm, other institutions would never have invested in BTC, and the currency would never have experienced its $64,000 high. For example, not long after MicroStrategy initiated its first BTC purchase, Square – the payment firm run by Twitter CEO Jack Dorsey – bought into BTC and purchased roughly $50 million worth of the asset. This paled in comparison to how much MicroStrategy had bought, but it was a step in the right direction according to most tech analysts. The company has since bought about $120 million more.
Still, There Are Losses to Deal With
Tesla, as mentioned before, was also quick to join in, and initiated the largest single purchase of the cryptocurrency.
But while MicroStrategy is still confident in bitcoin’s future, it is dealing with losses here and there given the volatility of the asset. Last week, the company posted its biggest BTC loss ever, with just under $300 million vanishing into thin air, though Saylor is confident the money will be recouped once bitcoin is able to bounce back.