MicroStrategy has now invested $475 million into Bitcoin, but this may just be the beginning...
If you are in crypto you have likely heard about MicroStrategy by now.
They were the tech company that took the crypto world by storm when they announced they were putting hundreds of millions of dollars of their company's treasury assets into bitcoin.
Something not many other companies had done before them.
After buying another $50 million a few days ago, they have now invested a shaded under $500 million total in bitcoin.
@jrcornel/microstrategy-buys-another-usd50-million-in-bitcoin
Not too shabby!
However, it's not just what they have already bought that gets me excited, it's what they could be buying the future...
Here's what gets me really excited...
If you saw the quote from CEO Michael Saylor the other day you likely got the fact that they invested another $50 million into bitcoin... that part was clear.
However, there was something else in there if you dig a little deeper that got me really excited...
Here's the quote btw:
(Source: @jrcornel/microstrategy-buys-another-usd50-million-in-bitcoin)
Specifically this part:
"in accordance with its Treasury Reserve Policy"
Hmm... now that could be taken several ways but the way I read it, it sounds like they are going to be continuing to invest whatever excess cash they have in bitcoin "in accordance with its Treasury Reserve Policy"...
That may be a reach on my part or it may not be, tough to say at this point, but if it's not, that would mean that the more excess revenue/cash the company generates, the more bitcoin they will be buying.
They paid over $19,400 per bitcoin with that recent $50 million, which is near the top of the current range. That may also indicate that they don't care much about price and are simply going to be dumping whatever excess cash they generate into bitcoin.
So, the better MSTR does as a company, the more bitcoin they are going to scoop up!
Their stock price has been absolutely soaring these last several months, trading along with bitcoin more than anything that they company is doing, imagine if they were to sell some more equity?
They could use that equity to grow the business, generate more revenue and eventually excess cash, which you guessed it, could then be used to be more bitcoin!
See the cycle here?
There is no guarantee that it will work like this, and it probably won't, but it may work out in sort of variation of that, which also includes buying more and more bitcoin as the months go by.
This puts a major buyer on the bid at whatever price for bitcoin, which is what it's going to need to keep pushing it higher when the price gets to really crazy valuations eventually.
Just some things to think about.
Stay informed my friends.
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