S.Oftenware company MicroStrategy (MSTR) recently increased its holdings of Bitcoin (BTC) by about a quarter of a billion dollars, bringing its total Bitcoin holdings to about $ 5.1 billion.
The recent purchase of 5,050 coins at an average price of $ 48,099 is in line with CEO Michael Saylor’s dual corporate strategy: developing the software business and using excess cash for Bitcoin purchases. The software company, which first bought Bitcoin in August 2020, is now the largest corporate investor in cryptocurrency.
Saylor, who expects Bitcoin to outperform all other asset classes, tweeted last week that his company avoided a “billion dollar mistake” by investing in Bitcoin. And Bitcoin maximalist Saylor’s strategy of including the de facto crypto leader on the balance sheet has paid off so far.
In a statement filed with the Securities and Exchange Commission, MicroStrategy said the company now holds 114,042 bitcoins, which were bought for $ 3.16 billion at an average price of around $ 27,713. Based on the current market price, these coins are now valued at approximately $ 5.1 billion.
“Our strategy is long #Bitcoin, long-term, used intelligently,” he tweeted last month. “It’s only a matter of time before billions of people hook up their cell phones to Bitcoin and we want to be there first. Tech is digital property.”
Diversification of cash for bitcoin
Forward-thinking companies from automaker Tesla to payment company Square have swapped billions of dollars in cash for Bitcoin on their balance sheets.
According to Bitcoin Treasuries, companies own 1.66 million Bitcoin, or nearly 8% of supply. The offer of the crypto leader is limited to a total of 21 million BTC.
Businesses are replacing Bitcoin with cash for a number of reasons. Bitcoin’s price increase compared to fiat currencies was a major factor behind this strategy. Second, companies want to protect their money from rising inflation and currency devaluations.
In addition to these two reasons, a low interest rate environment and a battered bond market have pushed companies and investors into alternative asset classes.
“Global macro, monetary and digital developments have converged and require all forward-looking companies to include alternative assets on their balance sheets,” said MicroStrategy President and CFO Phong Le.
“The ecosystem and regulatory environment for digital assets, particularly Bitcoin, are mature enough to make this strategy accessible and mainstream,” added Le.
Who has the most bitcoins on their balance sheets?
In addition to MicroStrategy, these are the top Bitcoin buyers from companies.
After MicroStrategy, Elon Musk’s Tesla is the second largest holder of the crypto leader. Musk’s electric car company bought $ 1.5 billion worth of Bitcoin earlier this year. The world’s second richest person, with a net worth of $ 162.7 billion, recently announced that Bitcoin is its largest holding outside of Tesla and SpaceX stocks. He also personally owns Ethereum and Dogecoin.
Galaxy Digital Holdings
Michael Novogratz’s crypto-focused commercial bank Galaxy Digital Holdings holds 16,400 BTC, according to Bitcoin Finance.
Novogratz, who expects the Bitcoin price to rise significantly in the coming years, has also invested heavily in other crypto projects. His company has invested over $ 52 million in capital in 14 NFT-related companies, according to its second quarter results.
According to bitcoinworldwide.com, the crypto broker Voyager Digital owns 12,260 BTC coins. Earlier this year, Voyager CEO Steve Ehrlich predicted that crypto would go mainstream this year.
“We will see how institutions, companies and public companies hurry to secure their cash reserves in Bitcoin more quickly,” predicted Steve Ehrlich.
Voyager Digital, which aims to provide a one-stop shop for trading digital assets, posted sales growth of 65% in the June quarter from the March quarter.
Payment company Square, which has billions in Bitcoin revenue, owns approximately 8,027 BTC. Square first bought $ 50 million worth of Bitcoin last year and raised more $ 170 million worth of coins earlier this year. CEO Jack Dorsey predicts that Bitcoin will eventually become the “single currency” of the Internet.
Marathon Digital and Coinbase are also among the largest corporate Bitcoin holders with 6,226 BTC and 4,487 BTC respectively.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.