Business intelligence firm Microstrategy took advantage of the downfall in Bitcoin price to make his company millions of Bitcoin holders firm.
Microstrategy is a business intelligence firm, which is also a publicly listed company. Just a couple of years ago, the company started to buy Bitcoin and now the company holds more than 1.25 lakh Bitcoins in its portfolio. Michael Saylor is the founder and CEO of Microstrategy. Saylor is a bitcoin lover, so he is adding Bitcoin to the balance sheet of the company. Saylor suggests other companies go with Bitcoin through services or investments to sustain the future.
On 29 June, Michael Saylor informed his Twitter followers that Microstrategy purchased a total of 480 Bitcoins for $20,817. The total cost of this purchase was approximately $10 million.
Now the company holds a total of 1,29,699 Bitcoins on its balance sheet and the average buy price of each Bitcoin is equal to $30,664. So the company is under a loss of more than 30%.
The Chief executive officer of the Binance crypto exchange responded to this step of Microstrategy and indirectly appreciated the company & hinted that it is a good step by this company to add more and more Bitcoins to its balance sheet.
Binance’s CEO said that people may laugh at him in the present situation but they will no longer laugh at him in the long term.
Popular Bitcoin critic Peter Schiff also responded to this step of Microstrategy and noted that the company already lost around $1.4 billion on Bitcoin buy and further buying of more bitcoins will result in wastage of money.