Microstrategy bought on Monday 13,005 Bitcoins worth about $489 million at an average price of $37,617 per coin.
Microstrategy’s CEO Makes Bitcoin Acquisition Second Business
Microstrategy’s primary business is software development. Michael Saylor, the CEO of the company, has added Bitcoin acquisition as a second mandate.
We rotated our shareholder base and transformed ourselves into a company that’s able to sell enterprise software and to acquire and hold bitcoin, and we’ve done it successfully with leverage.
All these purchases have been a big benefit for the company as the year-on-year revenue jumped to 10%. Saylor says:
That has increased the power of the brand by a factor of 100. We just had our best software quarter … in the last 10 years last quarter
Microstrategy has also seen the benefit in terms of stock value. In August last year, when they first started buying BTC, their stock price was around $120. Today, it is $580, a sharp increase of over 400%.
The bitcoin business is driving shareholder returns. I think the employees are happy. The shareholders are happy.
BTC is down to $32,195 today. This value is 19% down compared to last week. While over the entire month, its down slightly less, around 15%.
Here is a chart that showcases the current trend:
It looks like the market is bearish right now, and it’s unclear when it would change for the better.
China’s crackdowns on crypto seem to be having a major effect on the price of BTC so the future of the market probably depends on that as well. Right now, China doesn’t seem to be slowing down.
Some experts believe the market could correct itself to 1/2 of the value at $17k, and only after that a bullish pattern will make a return.