MicroStrategy to Purchase Bitcoin by Raising $1bln via Stock Offering
In 2021, institutional interest in Bitcoin has reached a new high. MicroStrategy is among the firms that has supported Bitcoin’s goal. Over 92,000 BTC are held by the firm. Michael Saylor, the company’s CEO, has openly claimed that Bitcoin is superior than gold. His business just announced its intention to purchase additional Bitcoin by selling over $1 billion worth of Class A ordinary stock.
He justified his choice by claiming that Bitcoin is the ideal asset to invest at times of rising inflation. He went on to say that now is the moment to quadruple his budget.
“I believe we have seen micro tactics for inflation throughout the last 12 months, and I believe we are seeing it now. I believe investors are taking notice of the fact that bitcoin has increased by 330 percent since the beginning of the year, while gold has increased by 7%. As a result, bitcoin outperforms gold by a multiplier of 50 as a hedge against inflation. As a result, early bitcoin enthusiasts like Paul Tudor Jones and others are wondering, “Perhaps it’s time for me to increase or triple my investment.”
Bitcoin is 50 times superior to gold, as per him, and it’s astonishing that investors haven’t increased their investment by a factor of ten. The CEO of MicroStrategy is well-known for being a BTC maximalist who seldom speaks about other cryptocurrencies. He appears to have acquired a curiosity in other cryptos, though. As per him, the Ethereum blockchain and its native cryptocurrency, like other cryptocurrencies, have a role in the ecosystem and fulfill distinct functions.
He feels that present stablecoins, which serve a similar function to the forthcoming Central Bank Digital Currency, have a place in the ecosystem (CBDC).
— CNBC’s Fast Money (@CNBCFastMoney) June 15, 2021
“You’ll want to put your structures on a strong granite foundation, so bitcoin is built to endure a lifetime – it has great integrity and is quite durable. Ethereum is attempting to dematerialize financial institutions and exchanges.”
Though every asset has its purpose, novices to the crypto realm may find it difficult to distinguish between them.
MicroStrategy is believed to have purchased first ever Bitcoin in August with funds from its bank account. Two convertible debt sales have been conducted since this time to obtain cash to fund more Bitcoin acquisitions. Saylor has urged other businesses to invest in Bitcoin. Bitcoin, he predicts, will reach a market capitalization of $100 trillion in the future.