MicroStrategy Inc (MSTR) has been making waves in the cryptocurrency world with its recent purchase of an additional 12,000 Bitcoin (BTC/USD) worth more than $800 million. The company’s Executive Chair, Michael Saylor, recently appeared on CNBC’s “Squawk Box” to explain why MicroStrategy is so bullish on Bitcoin.
The investment firm announced a new $800 million convertible senior notes offering and used the net proceeds to buy Bitcoin. In a regulatory filing, MicroStrategy revealed that it now holds approximately 205,000 Bitcoin. This move comes as Bitcoin has surged more than 70% since the beginning of the year, driven by increased demand following the approval of spot Bitcoin ETFs in January.
Saylor believes that the approval of spot Bitcoin ETFs has diverted capital from other risk assets into Bitcoin, making it a more attractive investment option. He also pointed out that the upcoming halving event, expected to take place around April 20, will cut the supply of Bitcoin in half, further fueling the supply-demand imbalance and driving up the price of the cryptocurrency.
According to Saylor, MicroStrategy offers investors a better Bitcoin investment vehicle than ETFs because the company has intelligent leverage. By borrowing funds at low interest rates to invest in Bitcoin, MicroStrategy can outperform the market and attract more capital.
Saylor emphasized that Bitcoin is a superior investment to traditional assets like gold, equities, bonds, and real estate. He described Bitcoin as digital, global, ethical, and fundamentally useful, making it a valuable addition to any investment portfolio.
Despite the volatility in the cryptocurrency market, MicroStrategy has remained committed to its Bitcoin strategy. Saylor stated that the company has never questioned its investment in Bitcoin, as it believes in the long-term value and potential of the cryptocurrency.
As Bitcoin continues to reach new highs, Saylor is confident that the rest of the world will eventually realize the benefits of investing in the digital asset. With its strategic approach to leveraging funds for Bitcoin purchases, MicroStrategy is poised to capitalize on the growing demand for cryptocurrency investments.
Overall, MicroStrategy’s bold move to invest heavily in Bitcoin demonstrates its confidence in the future of cryptocurrency and its commitment to providing investors with a unique and lucrative investment opportunity.
