MicroStrategy Will Continue to Buy and Hold Bitcoin
Reporting from Cryptoglobe, in August 2022, MicroStrategy had purchased 21,454 Bitcoin or the equivalent of US $ 250 million as its main reserve asset.
“Our decision to invest in Bitcoin was driven by various macro factors that affect the economic and business climate and we believe this will be a risk to our storage program in the long term, this risk itself must be taken seriously”, added Michael Saylor, Co-Founder of Microstrategy. .
Since MicroStrategy decided on this, the company has held around 130,000 BTC which is equivalent to US$3.98 billion at an average price per Bitcoin of US$30,649.
Phong Le himself added that “his company's main strategy is to buy and hold Bitcoin for the long term and not to sell it. You have foresight and will not be affected by short-term price fluctuations.”
The microstrategy of buying Bitcoin is a strategy that has a great effect on the company itself, especially in reducing non-GAAP fees.
For your information, GAAP stands for Generally Accepted Accounting Principles, which means generally accepted accounting principles adopted by the United States SEC.
“This is due to the stable price of Bitcoin in the third quarter with a nominal value of US$700,000 lower than the third quarter of 2021 which was US$65 million. Bitcoin volatility has also dropped below this figure in the past month,” said Andrew Kang, CFO of Microstrategy.
In the opinion of former CEO, Michael Saylor, since implementing this strategy on August 11, 2022, MicroStrategy's stock performance has soared higher than most other assets. In fact, MicroStrategy managed to outpace the shares of major technology and software companies that became the main reference.
He continued, gold itself declined by 19 percent, while Bitcoin jumped by 116 percent. This is certainly able to boost the performance of MicroStrategy in a short time.
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