Software firm Microstrategy has announced the acquisition of bitcoin worth nearly a quarter billion dollars.
Chief Executive Michael Saylor revealed that his company now holds more than $5 billion worth of bitcoin, making it the largest corporate investor in the cryptocurrency to date.
Tesla is the second largest holder, having bought $1.5 billion worth of bitcoin earlier this year.
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Mr. Sailor has previously outlined his twin corporate strategy of growing Microstrategy’s software business, as well as “acquiring and holding bitcoin” with additional cash.
As one of the most popular and outspoken advocates of bitcoin on social media, Mr. Sailor is known for his bullish price predictions and his refusal to sell any of the company’s holdings, even if its value crashes.
Bitcoin currently has a market cap of around $850 billion, although Mr. Sailor believes it has the potential to “flip gold,” with a market cap of over $11 trillion.
“[Bitcoin] The entire gold market cap is going to be contained,” he told CNBC earlier this year.
“Once it gets to $10 trillion, its volatility will decrease dramatically. As it moves toward $100 trillion, you’re going to see a drop in growth, a drop in volatility, and that’s the 21st. going to have a stabilizing effect on the entire financial system of the century.
MicroStrategy bought the latest bitcoin between July 1 and September 12, when the price of the cryptocurrency was slightly higher than it is currently.
“MicroStrategy has purchased an additional 5,050 bitcoins for ~$242.9 million in cash at an average price of ~$48,099 per bitcoin,” he tweeted.
The latest purchase means the company has now spent more than $3.1 billion on the cryptocurrency and brought the company’s total holdings to 114,042 bitcoins.
At current rates, it is worth around $5.1 billion.
Credit: www.independent.co.uk /