MicroStrategy, the world’s largest publicly traded corporate holder of $BTC, stays committed to its Bitcoin acquisition strategy despite recent market fluctuations. 👍
CEO Phong Le announced during the firm’s Q1 earnings call that the company plans to continue purchasing Bitcoin with excess cash and net proceeds from capital markets transactions. Currently, MicroStrategy holds 140,000 Bitcoins, purchased at an aggregate cost of $4.2 billion.
Le reassured investors that MicroStrategy’s core business remains unaffected by short-term Bitcoin price changes and that the company’s financial health is strong. MicroStrategy recently repaid its $205 million Bitcoin-backed loan from Silvergate at a 22% discount, recovering 34,619 Bitcoins in collateral. As of March 31, 2023, only 11% of the company’s total Bitcoin holdings were pledged as collateral for debt.
Despite concerns over Bitcoin’s volatility, Executive Chairman Michael Saylor remains bullish, considering it a hedge against inflation and a safe-haven asset. While MicroStrategy’s Bitcoin investments have recently paid off, it’s unclear if the holdings will continue to appreciate or if the cryptocurrency’s value will decline. 🤔