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February 17, 2021
Comments Off on MicroStrategy ready to buy 2nd stash of Bitcoin
When most of us are watching bitcoin cross the $50,000 thinking whether to invest in it or not. MicroStrategy in its recent filling announced that it will start buying more bitcoins. It is entirely unfazed by the volatility of a crypto market. MicroStrategy is looking to sell its convertible bonds 
worth $ 600 Million. Which it will use to increase its bitcoin holdings in the coming days. Around last summer MicroStrategy actively bought its first stash of bitcoin. The company invested somewhere around $ 1.15 Billion in BTC which has come a long way. With this corporate strategy, they are looking to buy their second stash of bitcoin very soon.
worth $ 600 Million. Which it will use to increase its bitcoin holdings in the coming days. Around last summer MicroStrategy actively bought its first stash of bitcoin. The company invested somewhere around $ 1.15 Billion in BTC which has come a long way. With this corporate strategy, they are looking to buy their second stash of bitcoin very soon. But that’s not all there is to know, after their successful bet on bitcoin paid off this changed drastically. Now, MicroStrategy has earned a name for its bitcoin investments. Are you investing in MicroStrategy just to be safe from extra volatility? Then you’re paying a hefty premium.
About MicroStrategy
The company started in 1989 by Sanju Bansal & Michael J. Saylor. It is also the very first corporate buyer who dared to purchase bitcoin directly at that time. This was the idea of its CEO Michael Saylor. As he was actively analyzing the value of USD diminishing by large margins. MicroStrategy currently holds around 70,500+ bitcoins. This is after its first purchase in August 2020. This holding is worth around $ 3.5 billion as of 17th Feb 2021.
The CEO’s bet on bitcoin has paid off pretty well and paved a name for him across the globe. Bitcoin has appreciated around 315 % since its purchase in August. This directly tripled their investments to $3 Billion.
That’s not all, what if I tell you MicroStrategy has outgrown bitcoin itself? Well, you certainly won’t believe me, but that is 100% true. The company bought BTC at around $16,035 with an investment of around $1 Billion and the rest is history. Although bitcoin grew by 300%, MicroStrategy’s shares have soared by around 700% since then. This also increased the total valuation of MicroStrategy. Now it’s valued at $ 10 Billion, from $ 2 Billion in August.
Why are people paying a Premium by investing in MicroStrategy?
To understand this, you will have to be in a hypothetical situation. Say at the price of $ 50,000 MicroStrategy can purchase around 12,000 coins with its $ 600 Million. Now take the shares the company 
already owns which is around 71,000 and add 12,000 more to it. MicroStrategy has around 83,000 BTC in total. The shares outstanding are 7.6 Million meaning each share will get around 0.011 bitcoin.
already owns which is around 71,000 and add 12,000 more to it. MicroStrategy has around 83,000 BTC in total. The shares outstanding are 7.6 Million meaning each share will get around 0.011 bitcoin. The share price of MS was $135 in August that soared to $955 as of today. So, if an investor is looking to invest in MicroStrategy today only for its fair share in Bitcoin. He will be paying around $86,818 for each bitcoin he will own in proportionate to his shares. This is at almost 55% premium than the market rate.
However, things are not that bad. MicroStrategy has been outperforming bitcoin since August. This explains why everybody is after it.
