2023-05-03 15:36:54
Business intelligence company MicroStrategy is sticking with bitcoin despite market volatility. The insanely fluctuating prices scare many people, but Michael Saylor’s company is standing the ground.
All of this was announced by Phong Le, CEO of MicroStrategy By the first quarter of 2023 during its relevant assessment.
“As we all know, our strategy is to get as many bitcoins as possible. To this end, we will continue the acquisition in the future, using the surplus capital at our disposal, as well as the net profit from capital market transactions”Le explained.
According to him, the short-term fluctuation in the exchange rate of the flagship cryptocurrency does not affect MicroStrategy’s core business.
Is BTC the future for MicroStrategy?
“We are committed to and believe in our long-term plans for bitcoin with the utmost conviction”added the specialist who has held the position of CEO since August 2022.
As a result, the company plans for the long term with bitcoin, which is perfectly reflected by its excellent risk management solutions. Since 2020, they have been making regular investments in the crypto space, the most recent one took place in April, for example, when they bought 1,045 bitcoins. MicroStrategy currently holds 140,000 BTC, worth approximately $4.2 billion. This gives them the title of the world’s largest bitcoin holder in terms of publicly traded companies.
He also assured the investors that the company’s financial situation is stable. This is also proven by the fact that last year he managed to repay the 205 million dollar loan he received from the Silvergate bank, with a 22% discount. In this regard, a document forwarded to the SEC also revealed that the settlement of the loan was covered by a $339.4 million stock sale.
After the repayment, MicroStrategy received back 34,619 bitcoins, which served as collateral for the duration of the agreement. According to official information, as of March 31, 2023, only 11% of the bitcoin reserves owned by the company are pledged due to various debts.
They’ve received a lot of criticism over the years, but MicroStrategy is keeping a close eye on the evolution of volatility. Michael Saylor, executive chairman and co-founder, says BTC is “100% better than gold” and an unbeatable hedge once morest inflation.
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