“Bitcoin is our best hope” – MicroStrategy CEO
2 min read- Microstrategy will hold over $1 billion worth of Bitcoin after this sale
- The firm’s CEO says Bitcoin offers an opportunity as a store of value
Microstrategy CEO, Micheal Saylor has said that Bitcoin offers the firm an opportunity as a store of value. According to him, the fear of losing all due to the threats of inflation can be negated by investing in Bitcoin which can act as a safe haven treasury reserve haven.
For the above reason, the CEO said “Bitcoin is our best hope” in one of his recent tweets.
Saylor added that Microstrategy traded on stock just like every other company. But the difference here is that what they are trading on is Bitcoin which is in their treasury reserves.
After adding the current $650 million bet on Bitcoin to the holdings of Microstrategy, the firm holding in BTC has grown to over $1 billion.
The company had first purchased BTC worth $250 million in August, then it bought another worth $175 million before recently purchasing another round of the crypto asset for $50 million.
Microstrategy recent $650 million Bitcoin bet
MicroStrategy has completed the sale of $650 million convertible notes that have an interest rate of 0.750%. The funds generated through this sale is expected to go into the purchase of more Bitcoin for the firm.
The company in a blog post went on to say that it intends to invest the generated revenue into Bitcoin. However, the company would first be removing its capital needs and other funds that might be needed for its corporate operations.
The initial offering was $400 million but it was later increased to $550 million. Citi analysts had given a bearish call to the company for its Bitcoin net but that has not deterred them as there is still an additional $100 million that is up for grabs.
One hedge fund that has made its name for its ability to generate huge returns, Renaissance Technology has been buying stocks of Microstrategy since the beginning of the year.
