The BI software company MicroStrategy has released a press release stating their move to buy more BTC. The buying of the largest cryptocurrency has moved the company under the radar of digital asset analysts because the company’s Bitcoin portfolio is off the charts.
The company released a statement stating the sale of bonds with an estimated worth of $500m to buy more Bitcoin, further adding the claim to sell close to $1b of stocks later on. The BI software company is among those institutions that set ablaze to the ongoing organization’s interest in the largest cryptocurrency of the world.
The company is currently holding close to 92k bitcoins with a worth of $3.6b. The figure is thought to increase and reach the $5b mark after the latest fundraising.
Now the holding of Bitcoin is the main strategy that the company is going after, which is also cemented by its filings with the United States SEC.
The recent move by MicroStrategy led many to raise eyebrows in the digital asset space because of the potential risk of overspending, especially in the light of recent cryptocurrency’s woes.
MicroStrategy is considered as one of the largest publicly owned BI firm, and henceforth, understand the complete risk linked with spending such a massive amount of resources on Bitcoin.
Regardless, BTC’s reward throughout the recent years has outweighed its associated risk. Last August, MicroStrategy bought Bitcoin up to 21,454 with a possible worth of $250m. Later on, MicroStrategy went on to buy more Bitcoin, which led its holding to a substantial amount of 70,470 Bitcoins with a worth of $1.125b.
The expected value of the company’s Bitcoin holding reached $2.4b, indicating an increase of more than 100 percent as time passed this year. In February, the Bitcoin holding again increased to $3.6b, over twice the amount of Bitcoin that was spent initially to buy them.
The Business Intelligence company shares also increased to 15.9 percent and closed near $598.5 approximately. The form filed to the SEC by MicroStrategy started selling shares worth $1b, which gains will later be utilized to buy more Bitcoin along with other mundane corporate needs.
Even though it seems that the MicroStrategy move is excessive, the benefit that the company can get in return does justify it to some extent.
The post MicroStrategy Wants To Buy More BTC: Is It The Right Track For The Company? appeared first on CryptocyNews.com.
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