MicroStrategy dumps another $1 billion into Bitcoin, adding to its enormous holdings

Shawn Knight

Posts: 13,011   +130
Staff member
A hot potato: Bitcoin has been on one heck of a run over the past several months and it all got started when financial services company Square spent $50 million, or about one percent of its total assets, to purchase 4,709 Bitcoins back in October. The crypto market got another huge shot in the arm in early February when Tesla revealed a $1.5 billion investment in Bitcoin. Since then, and up until a few days ago, it’s been mostly upwards and onwards for the digital currency.

Bitcoin briefly hit an all-time high of just over $58,000 on February 21 before a slide brought the value back down around the $45,000 mark. The dip seemed to be an opportune time for some to reaffirm their commitment to the coin.

Square on Tuesday in its latest earnings report said it has purchased another 3,318 Bitcoins for $170 million. Doing the math, that works out to around $51,236 per coin. When Square bought its first batch of Bitcoins back in October, it paid roughly $10,617 per.

Looking at that initial $50 million investment alone, it has grown to more than $231 million in less than five months.

Business intelligence firm MicroStrategy, meanwhile, has also grown its Bitcoin holding substantially. On Wednesday, the company announced the purchase of 19,452 Bitcoins for $1.026 billion in cash, which works out to an average price of approximately $52,765 per. According to CoinDesk, MicroStrategy’s investment is the second-largest single (known) dollar investment in crypto by a US company behind Tesla.

With the latest purchase, MicroStrategy now owns 90,531 Bitcoins. According to the company, the average purchase price of each coin works out to $23,985, inclusive of fees and expenses.

Images courtesy Maxx-Studio, Blue Planet Studio

Permalink to story.

 

QuantumPhysics

Posts: 4,619   +4,974
Dumping large amounts of money into Bitcoin is the only way to "make it go up".

Elon Musk found out the hard way. If he was gonna risk money, it should have been "his money"...not Tesla's. Now Tesla is directly intertwined with the value of Bitcoin and I'm fairly certain plenty of Tesla investors don't like that exposure. If Bitcoin goes down (like it did) then Tesla goes down too.

Mastercard is joining in on Bitcoin just like Paypal did and this is only serving to make Bitcoin purchasing easier for the lay investor who's obsessed with the hype but what they don't seem to understand is that in order for them to see "double their money" the price of Bitcoin needs to "double" from $50,000 (US Dollars BTW) to $100,000 (USD)

There are so many other stocks that could have doubled or tripled their money over the past year - especially if the person bought in during the March crash.
 

terzaerian

Posts: 662   +926
Because MicroStrategy knows what's coming - inflation, on a scale we haven't witnessed since the Carter administration. Video cards are just the leading edge of the trend.

Crypto may or may not just be a hedge for MicroStrategy against inflation, but for end users it's more than that, it's about refusing to play the game.
 

terzaerian

Posts: 662   +926
Still pissed at myself for not buying some coins when they were less than 1k...
Bitcoin specifically has had 3 out of about 12 projected halvings (events when the protocol reduces the block rewards for miners by half, which cuts supply and inflation). You're still at the ground floor.

And there are dozens of other promising projects in crypto right now as well, especially in Ethereum and decentralized finance.

Do some research and dip your toes in is my recommendation. Put in what you can afford and you'll soon find you'll be able to afford a lot more.
 

NeoMorpheus

Posts: 362   +651
Bitcoin specifically has had 3 out of about 12 projected halvings (events when the protocol reduces the block rewards for miners by half, which cuts supply and inflation). You're still at the ground floor.

And there are dozens of other promising projects in crypto right now as well, especially in Ethereum and decentralized finance.

Do some research and dip your toes in is my recommendation. Put in what you can afford and you'll soon find you'll be able to afford a lot more.

Thanks, will look into that.
 

Bulllee

Posts: 159   +114
I'm usually skint because I spend.
Fair enough QP still lives at home with his his mum(wish I did).
Respect to terzaerian for daring to dare though.
 

QuantumPhysics

Posts: 4,619   +4,974
Because MicroStrategy knows what's coming - inflation, on a scale we haven't witnessed since the Carter administration. Video cards are just the leading edge of the trend.

Crypto may or may not just be a hedge for MicroStrategy against inflation, but for end users it's more than that, it's about refusing to play the game.


Inflation is being exported.

#1 People are spending their stimulus checks on manufactured goods. That money is LEAVING US shores and headed to Asia where they'll hold it until they come here to buy up property.

#2 The stimulus checks have in many cases been spent in the stock and crypto markets. The government should have given us debit cards to buy specific emergency goods rather than let these people gamble them away.

#3 Kyle Rittenhouse used his and bought a gun.
 

Watzupken

Posts: 82   +57
That's how big organization keep the fire burning for cryptocurrences. When it is fizzling down, they add more "firewood" to it knowing that the market will react positively + strongly, and so pushing their investment up. So its more like betting that their big investment will stir the market enough to bump up the value of their investment.
 
Bitcoin specifically has had 3 out of about 12 projected halvings (events when the protocol reduces the block rewards for miners by half, which cuts supply and inflation). You're still at the ground floor.

And there are dozens of other promising projects in crypto right now as well, especially in Ethereum and decentralized finance.

Do some research and dip your toes in is my recommendation. Put in what you can afford and you'll soon find you'll be able to afford a lot more.
This guy knows what's up.
 

terzaerian

Posts: 662   +926
This guy knows what's up.
Thanks. I've been following the scene pretty much since the beginning, and I get argumentative about it; a lot of that is some guilt and embarrassment over having used to regurgitate (and prescribe to) the same tired anti-crypto talking points back in the 2010s. People should be cautious, but not fearful, of the technology.

My goal is nonetheless not to get everyone to go out RIGHT NOW and buy, buy, buy - if that's what people do then I've failed again. Set aside whatever I've said as well as the FUD from elsewhere, do your own research, weigh the risks and benefits relative to your own knowledge and capabilities, and act accordingly. The second to last thing I want people to do is sink their life savings into something they don't adequately understand and get burned (the last thing being, of course, languishing with USD whose purchasing power and relevance is rapidly dwindling).