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MicroStrategy, a global provider of software platforms, again purchased large amounts of Bitcoin this week for $632 million. Founder and board chairman Michael Saylor is so convinced of the continued growth of the virtual currency that he takes the (too) high price for granted.

MicroStrategy itself does nothing with Bitcoin, it is mainly active in the cloud, but has a huge amount of Bitcoin on its balance sheet, totaling 214,246 BTC with an estimated value of about $7.5 billion.

With 214,246 BTC on its balance sheet, it has more than 1 percent of all Bitcoin in circulation.

According to JPMorgan analysts, MicroStrategy has bought $1 billion worth of Bitcoin this year alone, on top of a similar $1 billion purchase in the fourth quarter of 2023.

And that, in turn, is having a favorable impact on MicroStrategy's share price, which is skyrocketing.

Saylor, a staunch supporter of Bitcoin, has indicated that he has no plans to sell the company's Bitcoin stock. Bitcoin is the exit strategy, he said.

But there are also concerns about this gambling strategy. The bitcoin holdings have been financed largely by loans. But a future decline in Bitcoin could have hefty consequences, warn analysts at U.S. investment bank JPMorgan. If so, the U.S. company could have trouble paying off debt. Bitcoin went down sharply already this week, so on the most recent purchase Saylor has already suffered a substantial loss.

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