BlocksInform
Tech company MicroStrategy today announced another Bitcoin investment—bringing its “digital gold” fortune to over $5.4 billion.
The cloud software company, which arguably is one of the key reasons for Bitcoin’s phenomenal bull run, said it had pumped $15 million-worth of cash into the digital asset, buying an extra 253 Bitcoins.
Following the announcement, MicroStrategy’s stock (MSTR) also pumped and is today up 3.33%, according to Bloomberg data.
Last week, global financial services firm BTIG said MicroStrategy was worth investing in due to its bullish stance on crypto. According to BTIG, Bitcoin’s price could shoot up to $95,000 by 2022. And what benefits BTC also benefits MSTR, says the firm. The BTIG analyst noted that investors in the stock should consider knowing that their investment is highly correlated to the price of Bitcoin. However, not everyone is on board.
Last December, Citi analysts gave the same stock a sell rating based upon its investments in Bitcoin. Last December, analysts at Citi downgraded MSTR stock to "sell" based on the same logic—the firm's investments in Bitcoin. ?? Last month, the company's stock dropped nearly 20% in a matter of days following reports of MicroStrategy executives and directors selling off millions in shares.
MicroStrategy has purchased a second set of Bitcoins for $15.0 million at a price of $593,394 per bitcoin Starting in April 5th, 2021, we will
MicroStrategy has purchased an additional ~253 bitcoins for $15.0 million in cash at an average price of ~$59,339 per #bitcoin. As of 4/5/2021, we #hodl ~91,579 bitcoins acquired for ~$2.226 billion at an average price of ~$24,311 per bitcoin. $MSTRhttps://t.co/OMQMhA85xw
— Michael Saylor (@michael_saylor) April 5, 2021
MicroStrategy helped kick-start Bitcoin’s price surge last year by investing $250 million in the currency in August. Moreover, his company, which provides mobile software and cloud-based services to businesses, continues to acquire the coin.
The company then plugged another $175 million in the currency one month later. It's a synthetic, pharmaceutical-grade gold.
All the while, Saylor has consistently sung Bitcoin’s praises and described it as a “safe haven asset,” likening it to “digital gold.” According to the CEO, Bitcoin, which is up almost 41,000% since 2013, is such an asset.
“Bitcoin is the world’s first engineered safe haven asset,” he said in a December CNBC interview. Is it OK for us to have a little fun?
MicroStrategy, a tech company, announced today another digital gold investment, amounting to nearly $5.4 billion, bringing its total to over $5 billion. This cloud software vendor, arguably one of the most influential factors in Bitcoin’s phenomenal bull run, recently pumped $15 million of cash into Bitcoin, buying an additional 253 Bitcoins.
Other big firms have followed Saylor’s advice: payments company Square has invested $220 million in the currency in the past year, and Elon Musk’s car company, Tesla, made a $1.5 billion Bitcoin buy in February.
The global financial services group BTIG said last week MicroStrategy was of interest due to their bullish stance on cryptocurrency.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
