(Last Updated on December 21, 2020)
Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” said Michael J. Saylor
What do we know about the purchases?
The first declaration of Bitcoin as a Treasury Reserve asset.
Bitcoin is breaking the norm and re-writing what a “reserve asset” is.
Altering the course of history and adding a new “digital reserve asset” that can evolve far beyond gold’s wildest dreams..
Our definitions and traditional views on finance are quickly changing in this ever evolving digital landscape we are living in.
Here’s the traditional definition from Investopedia.com
MicroStrategy is a GIANT, United States based, publicly held company, that just LAUNCHED Bitcoin into a new evolution as a monetary tool for corporations to fight inflation.
Bitcoin = the hardest money
Having a locked 21 million total supply is the ultimate anti-inflationary hedge.
How did $MSTR buy their bitcoin?
Intelligently by paying close attention to market liquidity and volume spikes. This was one of the first transparent and legitimate massive BTC purchases ever documented by a public company.
$MSTR teamed up with Coinbase to develop a purchasing plan for their new reserve asset.
They weren’t exactly sure how easy it would be or how much they would affect the market and price volatility.
The strategy executed was to buy Bitcoin continuously in small amounts (less than 1 BTC) every 3-5 seconds while keeping a large cash chunk ready for any larger price dips.
“To acquire 16,796 BTC (disclosed 9/14/20), we traded continuously 74 hours, executing 88,617 trades ~0.19 BTC each 3 seconds,” $MSTR Co-founder Michael Saylor tweeted.
“$39,414 in BTC per minute, but at all times we were ready to purchase $30-50 million in a few seconds if we got lucky with a 1-2% downward spike”Michael Saylor on the September purchases of Bitcoin
It’s been proven possible and now $MSTR has shown others how it can be done.
Michael Saylor has laid the foundation for future companies to have the option to utilize a new, “anti-inflationary” monetary tool in BTC.
1st Purchase of 21,454 Bitcoin
August 11, 2020
MicroStrategy Inc (Nasdaq: MSTR), one of the biggest independent publicly-traded business intelligence companies in the United States. Declared today that they have acquired 21,454 Bitcoins at a total buy price of $250 million, inclusive of all fees and expenses incurred during the purchase.
Michael has become a thought leader for the Bitcoin community almost instantly when he released these time-transforming statements about Bitcoin’s future utility as a reserve asset.
Attacking fiat and addressing obvious upcoming macro issues with clarity and grounded reason. This step may go down in history as one of the major turning points in Bitcoin’s history becoming a new monetary tool for corporations around the world.
“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” said Michael J. Saylor, CEO, MicroStrategy Incorporated. “This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash. Since its inception over a decade ago, Bitcoin has emerged as a significant addition to the global financial system, with characteristics that are useful to both individuals and institutions. MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy.
MicroStrategy spent months deliberating to determine our capital allocation strategy. Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program — risks that should be addressed proactively. Those macro factors include, among other things, the economic and public health crisis precipitated by COVID-19, unprecedented government financial stimulus measures including quantitative easing adopted around the world, and global political and economic uncertainty. We believe that, together, these and other factors may well have a significant depreciating effect on the long-term real value of fiat currencies and many other conventional asset types, including many of the assets traditionally held as part of corporate treasury operations.
In considering various asset classes for potential investment, MicroStrategy observed distinctive properties of Bitcoin that led it to believe investing in the cryptocurrency would provide not only a reasonable hedge against inflation, but also the prospect of earning a higher return than other investments. Mr. Saylor articulated the opinion, “We find the global acceptance, brand recognition, ecosystem vitality, network dominance, architectural resilience, technical utility, and community ethos of Bitcoin to be persuasive evidence of its superiority as an asset class for those seeking a long-term store of value. Bitcoin is digital gold – harder, stronger, faster, and smarter than any money that has preceded it. We expect its value to accrete with advances in technology, expanding adoption, and the network effect that has fueled the rise of so many category killers in the modern era.”MicroStrategy SEC 99.1
2nd Purchase of 16,796 Bitcoin
September 14th, 2020
MicroStrategy Inc. had purchased 21,454 bitcoins at a total buy price of $250 million, including all fees. As of September 14th, 2020, $MSTR acquired an additional 16,796 bitcoins at a total buy price of $175 million, including all fees. As of this 2nd purchase, $MSTR now owns a total of 38,250 bitcoins at a total buy price of $425 million, including all fees.
3rd Purchase 2,574 Bitcoins
December 4th, 2020
On December 4, 2020, MicroStrategy Inc declared that it has purchased another 2,574 bitcoins for a total value of $50.0 million in agreement with its Treasury Reserve Policy. These buys were done over a small period of time and at an average cost of $19,427 dollars per bitcoin. $MSTR now owns a total of 40,824 bitcoins that were purchased as a Treasury Reverse asset with a total cost of $475.0 million dollars, including all related fees.
Nothing brings on confidence more than SEC filings by the leading “business intelligence” companies who specialize in the tech industry..
4th Purchase and now $1.125 Billion in spent fiat.
Pretty damn impressive year for Michael Saylor and the MicroStrategy team. Huge increases in stock price, overall valuations, and future possibilities by taking this COVID situation and pioneering a new direction in tech finance.
Yes, “tech finance”.
Bitcoin is the newest tech tool for finance and there will never be anything like it.
True originality and decentralization that could not be replicated again.
Where does this lead?
$SQUARE has already made the leap throwing in $50 million dollars in early October 2020.
The race has just begun for entities to setup a new treasury reserve of Bitcoin.
Does it align with the freedom and monetary morals that Satoshi dreamed of?
I’m not sure.
Will America return to being the leader for freedom and individual rights?
Could we not utilize Bitcoin as a monetary tool for Americans and work with our Government?
Time will tell.