Investment in Bitcoin (BTC) from MicroStrategy turns out well: $100 million in the plus3. November 2020
In August and September, MicroStrategy was in the news because it was the first listed company to invest heavily in bitcoin.
In total, the company purchased more than 38 thousand Bitcoin Fortune for an average value of $11,111 per currency.
MicroStrategy’s investment now stands at more than $100 million. The company has 38,250 bitcoin in cash.
The investment represents a large portion of the company’s reserves, which previously slowly melted away due to inflation.
Although the investment has been made fairly recently, the purchase has not harmed the company. After bitcoin passed the $13,727, the unrealized gain on the investment exceeded $100 million.
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MicroStrategy is not finished with bitcoin yet
MicroStrategy has repeatedly indicated that it has no intention of ever selling their bitcoin, despite the huge paper profit. In the company’s last earnings call, President Phong Li indicated that they are open to buying even more bitcoin.
„You can count on us to buy more bitcoin if we generate cash that we don’t immediately need to keep the business running. An unexpected but significant advantage of our bitcoin investment is our growing brand awareness across the market“.
According to analysts, MicroStrategy will be one of the many companies with bitcoin in their portfolio in the future.
More companies are queuing up for bitcoin
Parker Lewis of Unchained Capital, for example, indicated that the American Microsoft alone has $123 billion in short-term investments on its balance sheet. Plus another $13.5 billion in cash equivalents.
This huge pool of money is rapidly losing value because of the inflationary nature of fiat money. It wouldn’t be crazy if Microsoft decided to put at least part of that money in bitcoin.
In addition to Microsoft, Google and Apple also have huge containers of money in the company with which nothing happens. Real Vision CEO Raoul Pal also believes that the tech giants will add bitcoin to the balance sheet in the coming years.
He even expects bitcoin to go to a valuation of $1,000,000 within five years. Of course we won’t say no to that!