MicroStrategy to continue buying bitcoins despite leading publicly traded cryptocurrency stocks
MicroStrategy is not going to stop there and will continue to accumulate bitcoins, CEO Michael Saylor said in a letter to shareholders. To date, the company has already bought 129,218 BTC at an average price of $30,700 per coin, making it the leader among public companies in terms of BTC savings. Accordingly, it wants to retain that line in the ranking of crypto-buying giants. We tell you more about the situation.
It should be noted that other giants are also buying bitcoins. Luna Foundation Guard from Terra stands out more than any other this spring. They decided to buy $10 billion worth of BTC, and they have already bought about $1.7 billion worth of coins.
At the moment, the company has 42,530.82 BTC, which are valued at $1.66 billion at today’s exchange rate. The last major transaction of 123 bitcoins was made on Friday, with the giant acquiring 2,509 BTC two days before that.
Luna Foundation Guard bitcoin purchases in April 2022
It is important to note that the company’s investments are currently in the red, with a Bitcoin exchange rate of $40,086, the loss amounting to $87 million. Respectively, taking into account the current collapse of the main cryptocurrency into the area of 39 thousand, the minus has become even more significant.
Bitcoin’s hourly rate chart
Apparently, MicroStrategy will also not rest on its current results. The contents of a letter to the company’s investors supports this.
How much bitcoin MicroStrategy has
In the letter, Sailor described the company’s Bitcoin strategy as “complementing its business with analytics software and services” to help grow its corporate customer base. In addition to strengthening its core business strategy, the company also sees its parallel activity to acquire and retain the cryptocurrency as a great success.
MicroStrategy CEO Michael Saylor
MicroStrategy started accumulating Bitcoin back in August 2020 through excess cash flow from operations. Later, the company increased the rate of accumulation by using convertible bills, stock offerings and loans to buy more coins. According to CryptoPotato, there is every reason to believe that the ways of acquiring crypto will only expand in the future, meaning that the company will continue to make efforts to get even more coins through new schemes.
Top 5 public companies with BTC on their balance sheets
In addition to MicroStrategy, a big role in the adoption of the major cryptocurrency internationally is now being played by states that are seeking to legalize Bitcoin. Last year, El Salvador became such a country, soon to be joined by Mexico.
Madeira and Prospera are also among the candidates for recognizing BTC as legal tender. Moreover, in the case of the latter zone, the authorities have already promised no income tax on transactions with the first cryptocurrency. Read more about this in a separate article.
Admittedly, the process of legalising BTC in Mexico “will be an uphill battle”, a statement made by Mexican billionaire Ricardo Salinas at the Bitcoin 2022 conference. Here is his rejoinder, cited by Cointelegraph.
Central bank and finance ministry executives hate Bitcoin because of the freedom it represents, as well as the direct threat to their monopoly on money.
Note that digital assets do threaten the monopoly of bankers and governments. Firstly, the issuance of new coins is subject to protocol rules that cannot be influenced. Second, the fixed pace of coin issuance - along the lines of Bitcoin, for example - makes it impossible to create a new cryptocurrency at the whim of any official. The opposite is happening with fiat money, which is why the world is now experiencing record inflation over the past few decades.
Billionaire Ricardo Salinas
As the founder of Mexico’s Banco Azteca, Salinas admitted he was “part of a troubled system” and said he would like his bank to have access to cryptopayments and loans based on digital assets. Meanwhile, as the owner of supermarket chain Elektra Group, he is working to enable outlets to accept bitcoin payments for all products.
We believe that such appetite from the big giants means companies are recognising the huge potential of Bitcoin, which most have still not had time to consider. And when that happens, and BTC becomes an increasingly recognised asset, the role of MicroStrategy, Luna Foundation Guard and other big holders of the world's first coin will greatly increase. So now we just have to wait for that period.
What do you think about it? Share your opinion in our millionaires cryptochat. There, we’ll discuss other important news with an eye on what’s happening in the crypto world.
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