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Read more: MicroStrategy Bitcoin Investment Continues As The Price Nears $100,000
The return on the MicroStrategy Bitcoin investment gave a yield of 38.7% on investment and grew the company’s holdings significantly. If placed at the value of $96,000 per Bitcoin, the net income from the shareholders would equate to approximately $9.4 billion.
Last week, the company bought another 15,400 BTC for $1.5 billion to increase its total Bitcoin reserve to 402,100 BTC. These assets are now worth more than $38 billion.
Saylor has been very vocal about Bitcoin being a better alternative to traditional treasury strategies. In a short presentation to the board at Microsoft, he made it known that the conventional approach of the company had led to a missed opportunity to benefit from Bitcoin, which has grown 1,200% in the last five years. He said that instead of stock buybacks and dividends, investing in Bitcoin could have yielded better returns.
MicroStrategy’s Q3 report released in late October announced a plan to raise $42 billion in three years for the continuous expansion of its Bitcoin portfolio. Dubbed the “21/21 Plan,” this is a MicroStrategy Bitcoin investment strategy to cover $21 billion each from equities and fixed-income securities.
The company’s continued investment comes as Bitcoin approaches a historic $100,000 level, reflecting optimism over increasing institutional adoption and favourable regulatory developments under the incoming U.S. administration of President-elect Donald Trump.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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