MicroStrategy Shareholders Letter: We’ll ‘Vigorously Pursue’ More BTC Buys.
According to a letter to investors from MicroStrategy’s CEO, Michael Saylor, the company will not be stopping buying and holding Bitcoin anytime soon.
MicroStrategy CEO Michael Saylor told his company’s shareholders that his company plans to “vigorously pursue” its reserve assets strategy of buying and holding more Bitcoin.
According to wallet tracker Bitcoin Treasuries, Saylor’s publicly traded firm is the world’s largest single-wallet holder of Bitcoin (BTC) with 129,218 BTC. The current market value of the coins is $5.1 billion. On April 5, MicroStrategy purchased 4,197 additional coins.
Tesla, MicroStrategy‘s runner-up in the hodling contest, holds 43,200 BTC worth roughly $1.7 billion.
Saylor complimented his company’s continuous success in being early to add BTC to its treasury and provide value for customers and shareholders in MicroStrategy’s 2022 Proxy Statement, which was submitted with the SEC on April 14.
The company only paid $3.9 billion for the BTC in its treasury, resulting in a $1.2 billion profit margin on paper. In the letter, Saylor wrote:
“Our parallel strategy to acquire and hold Bitcoin has been a tremendous success.”
Microstrategy’s BTC assets are also in the green, according to the letter, but it has been difficult for the company’s executives to secure liability insurance. As a result, Saylor has footed the bill for the insurance himself.
Because Saylor owns 68.1% of MicroStrategy, he can very much do whatever he wants with the company, which may explain why other companies haven’t followed his approach. Since 2020, he’s been one of the most outspoken supporters of Bitcoin, and he uses his platform to reach out to a global audience.
Saylor’s software firm’s MacroStrategy subsidiary said on March 29 that it would use a $205 million Bitcoin-collateralized loan from Silvergate Bank to buy more BTC.
In a statement, Saylor stated that this was the first time his company had used its BTC assets as “productive collateral.”
Despite global headwinds from the war, inflation, and interest rate hikes, MicoStrategy and Do Kwon’s Terra (LUNA) have helped sustain some price confidence by buying tens of millions of dollars worth of Bitcoin at a time. Terra’s Bitcoin holdings are currently only 800 coins behind Elon Musk’s Tesla, which has the second-largest Bitcoin holdings among publicly traded businesses.
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