Michael Saylor: MicroStrategy to continue expanding Bitcoin reserves

MicroStrategy, the business analytics software provider, intends to ‘vigorously pursue’ its strategy of buying and holding Bitcoin. About this заяви́л CEO of the company Michael Saylor in a letter to the U.S. Securities and Exchange Commission.

MicroStrategy was the first publicly listed company to allocate part of its own capital to digital gold. According to the entrepreneur, this decision boosted the value of the firm for customers and shareholders.

“Our parallel strategy of buying and holding Bitcoin has been hugely successful,” said Saylor.

According to Bitcoin Treasuries, the software provider holds 129,218 BTC in reserves worth $5.17 billion. The latest purchase of $190.5 million was made by the MacroStrategy unit in early April.

For comparison: Tesla, the company second in line after MicroStrategy, owns 43,200 BTC worth about $1.7 billion.

Among private firms, non-profit Luna Foundation Guard (LFG) could pose competition to the software provider. In March 2022 it began forming a fund to ensure liquidity in Bitcoin necessary to support a stable price for the UST stablecoin.

According to BitInfoCharts, LFG’s aggregate balance stands at 42,530 BTC ($1.7 billion at current prices).

In September 2020, the MicroStrategy board of directors adopted a new policy for reserves management. The document confirmed the company’s willingness to continue expanding its holdings of the first cryptocurrency.

By the end of that year, the firm began using not only equity but also debt financing to buy Bitcoin, issuing convertible bonds worth $650 million.

In February 2021 MicroStrategy issued a new tranche worth more than $1 billion and again invested the raised funds in cryptocurrency.

Throughout the year the software provider continued to invest in Bitcoin. The biggest purchases were 13,005 BTC for $489 million in July and 7,002 BTC for $414.4 million in late November. In December MicroStrategy reported acquisitions of 1,434 BTC and 1,914 BTC.

In early 2022, Saylor reaffirmed commitment to the buy-and-hold Bitcoin strategy, despite a market correction. Later, this stance was supported by the company’s CFO, Fong Le.

Earlier in March, MicroStrategy drew a $205 million loan secured by its crypto assets to buy Bitcoin.

Earlier, Glassnode analysts noted the continuation of the trend of whale accumulation of digital gold. Among the companies exhibiting active demand for BTC, they named MicroStrategy.

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