MicroStrategy CEO Michael Sailor announcedthat his company invested another $ 175 million in Bitcoin (BTC), in addition to the $ 250 million invested in August. In a conversation with CoinDesk, he spoke about the reasons for this decision.
"I want something that I could invest $ 425 million in for 100 years."- he declared.
Sailor claims the company could no longertrying to keep their reserves in excess of $ 500 million in inflation-prone fiat currencies, low-yield bonds, or overheated technology stocks. In the current environment, he sees only two ways to properly use the surplus capital: share buybacks and bitcoin.
MicroStrategy's first step into the cryptocurrency space came as a surprise: the firm sold its voice.com domain to Block.One for $ 30 million to launch its social network on the EOS protocol.
The manager admitted that he was wrong when he talked about the imminent decline of the first cryptocurrency at a rate of $ 600 seven years ago.
"I wish I knew then what I know now"- he added.
Sailor started actively exploring bitcoin in 2020,when companies around the world began to experience difficulties amid the coronavirus pandemic. Then the firm realized that it has much larger reserves than it currently needs. The main task was to get away from the dollar, because the inflationary risk was too high.
For three months he, together with other leadersMicroStrategy has gained extensive knowledge of cryptocurrencies. They also had to resolve many issues related to storage, security and legal compliance. This is a major obstacle to a public company joining the digital asset space, Sailor said.
At the end of July, MicroStrategy cautiously stated thatover the next 12 months intends to invest up to $ 250 million "in one or more alternative investments or assets, which may include stocks, bonds, commodities such as gold, digital assets such as bitcoin, or other types of assets." A short time later, the company did announce a $ 250 million purchase of Bitcoin, discarding the 12-month plan, gold and other alternative assets.
In September, MicroStrategy admitted that it couldto increase investments in bitcoin and after a few hours did it, breaking the previously established limit of $ 250 million. Now there are 38,250 bitcoins in the reserves of MicroStrategy. Since the first purchase of cryptocurrency on August 11, its rate has risen by 30%, and today - by 9%.
Other public companies including Apple andGoogle has been holding billions of dollars in traditional currency surpluses for years. Sailor, however, says he did not want to watch their reserves gradually depreciate in bank accounts.
“To our own horror, we came to the realization that we were sitting on a $ 500 million block of ice and it was melting. This is not speculation or hedge. This is the company's directional strategy to adopt the Bitcoin standard. "- he added.
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