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- Ninety thousand coins were invested at $2.17 billion. In a statement issued, the company has informed that they will continue to invest in bitcoin using excess cash.
- The shares of the company went to 13% up.
MicroStrategy Considerable Bitcoin Investment & Positive Forecast
MicroStrategy seems to be bullish on bitcoin and has invested heavily in the future token. The company paid around $52,765 for almost 20,000 tokens.
MicroStrategy Inc. has been bullish on bitcoin and purchasing bitcoin for quite some time now. The enterprise software firm has been investing in several instances in bitcoin. The company paid around $52,765 for nearly 20,000 tokens last week. They have issued $1.5billion in convertible bonds.
The total holdings of the company have passed 90,000 coins, which reasons for the bitcoin investment. A total of $2.17 has been invested. In a statement issued, the company has informed that they will continue to invest in bitcoin using excess cash and may issue more debt to finance the purchases. The shares of the company went to 13% up.
After the two-day consistency seen in bitcoin, it bounced back, rising 3.5% to $49,725. MicroStrategy has paid an average price of almost $24,000 for its coins. One hundred per cent gain was observed.
With Bitcoin Comes Great Amount of Volatility
Investing in any cryptocurrency is a significant risk and buying bitcoin is equally a big risk for any investor. The tokens can slump anytime, and the losses can occur when the prices dip below the carrying value at any time since the purchase.
Last year MicroStrategy recorded losses of $70.7 million attributed to bitcoin’s price fluctuations, according to its 10k filing. If the company had bought the coins before it hit as low as $45,000, the company would be bearing a loss of $151 million, according to the data compiled by Bloomberg.
The company had purchased bitcoin for the first time in the summer of 2020. The company had used corporate cash reserves to purchase bitcoin—MicroStrategy then issued two rounds of convertible bonds for additional purchases. The company’s shares raised more than 400% last year.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
