While the weak hands were busy selling their Bitcoin, strong hands with deep conviction in Bitcoin took this as an opportunity to buy the dips. And MicroStrategy is the one that continues to increase its BTC stash.
The publicly-traded company announced on Friday that they purchased approximately 314 BTC for $10 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $31,808 per Bitcoin. With this latest purchase, the company now holds approximately 70,784 BTC, representing 0.38% of Bitcoin’s circulating supply.
The price of Bitcoin went down just under $29,000 on Thursday, a dip of about 30% from this month’s all-time high of $42,000. As of writing, BTC/USD has been trading around $32,000.
Talking about this pullback, Michael Saylor, CEO of MicroStrategy, said it is volatile for traders who like this volatility and has been getting it for the last 10 years running but not to “investors with a one to four-year time frame.”
“It's attracting a lot of capital in the asset class… I think it's having a stellar year, and 2021 is going to be really good for Bitcoin,” said Saylor on CNBC.
Institutional Safe Haven Asset
Saylor has big expectations from the leading digital currency and sees it as a “technically superior asset.” He said, going forward, this,
“Institutional safe-haven asset” is going to first flip gold then replace it, after that Bitcoin is going to become the monetary index that replaces stock indexes like the S&P 500, the Dow, the bond indexes, and the like “because people want to store their money and they want a safe haven store of value over the next 10 to 30 years” and they “are going to be attracted to a digital asset that has no inflation in it.”
However, Saylor isn't concerned about regulation like some because the incoming class of regulators is informed, thoughtful, and progressive, he said. “I think that crypto assets and Bitcoin have had a little bit of regulatory ambiguity in it,” and the regulatory parity and clarity is great for the industry which is “going to cause an avalanche of money to flow from institutions and corporations into Bitcoin,” Saylor said.
Avalanche of New Companies
MicroStrategy has been the first public company to put Bitcoin on its balance sheet, a move that has made Saylor popular among the crypto community.
As for those wondering if the company's employees are fine with him betting the company's future on BTC, Saylor said they are “delighted” that “we're pioneers in commercializing integrating with this digital monetary network because this is going to be the future.”
Talking about his Bitcoin bet, Saylor pointed to the tech giants Google, Facebook, Amazon, and Apple about which people weren't quite sure if they should embrace them when the internet first came along. But now companies that know how to use the internet and work with them “are the leading-edge companies, and they're winning.”
Moving forward, corporations that are cash-rich who are finding it to be a liability are looking for an asset “that’s going to appreciate faster than the rate of monetary expansion,” which is Bitcoin.
As such, Saylor sees corporations embracing Bitcoin either on their balance sheet like MicroStrategy or building bitcoin into their products and services like Square this year. “I think you're going to see an avalanche of new companies,” do this, he added.
To help these companies make an easier transition to Bitcoin, MicroStrategy is holding a conference in the first week of February to be attended by “thousands of executive officers and directors and advisors of corporations.”
“We're going to publish our playbook, all of our accounting guidance, our legal guidance, all the work we did over the course of months in order to get ready to do this as a publicly-traded company,” said Saylor.
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