MicroStrategy – the software giant that has made a name for itself purchasing bitcoin over the last year and a half – says that despite bitcoin falling to new price lows this week, the company is going to continue its BTC buying habits and it will likely purchase even more of the world’s number one digital asset in 2022 than it did last year.
MicroStrategy Is Planning to Continue Buying BTC
Chief financial officer Phong Le stated in an interview:
Our strategy with bitcoin has been to buy and hold, so to the extent we have excess cash flows, or we find other ways to raise money, we continue to put it into bitcoin.
As of September 2021, the company held as much as $2.4 billion in BTC, though at the time of writing, it is believed that the company holds more than $5 billion. The company is scheduled to release its fourth quarter earnings on February 1 of this year. Bitcoin has fallen to about $37,000, which is about $30,000 less than the all-time high it hit last November.
However, this really hasn’t done much to deter MicroStrategy. The company says that bitcoin is a risky and volatile asset and that drops like these have occurred in the past. At this stage, the company doesn’t want to worry too much about what could happen. Rather, it feels that the potential risks associated with the currency are worth taking given how much promise the currency has exhibited in just the last few years alone.
Le further commented:
We’re constantly looking at other ways to be additive to our shareholders as it relates to bitcoin.
MicroStrategy first came out of the woodwork in August of 2020 when it announced that it was buying more than $200 million worth of bitcoin. From there, the currency experienced a rather bearish September, and the currency dropped by $2,000, falling from roughly $12,000 per unit to $10,000.
In most cases, companies that would have invested in bitcoin at that time likely would have cut their losses short and sold everything they had purchased, but not MicroStrategy. Instead, the company continued to invest, which proved to be a solid decision. The following month in October, digital financial firm PayPal announced it was going to allow traders to hold their digital assets on the platform and that they could purchase, trade, and sell cryptos like bitcoin.
Not Everything Has Worked Well
This caused the price of BTC to shoot up to about $13,000. That’s an increase of about $3,000 from where it was, and MicroStrategy really began to see its profits rise.
Since then, the firm has established itself as one of the leading institutional investors of bitcoin, though this hasn’t come without drawbacks. For example, the firm is now so tied to bitcoin that with the asset’s drop, the company’s stock has fallen by about 19 percent.