MicroStrategy invests $1B in Bitcoin; CEO predicts 100-fold price rise

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Leading business intelligence, cloud services, and mobile software provider, MicroStrategy, has reportedly acquired over $1 billion worth of bitcoins, which took its total cryptocurrency holdings to more than $4.5 billion. According to credible sources, the company announced on Wednesday that it has purchased an additional 19,452 bitcoins at an average price of $52,475. This totals the MicroStrategy’s holdings to 90,531 bitcoins purchased at the average price of $23,985 per bitcoin. This implies that the firm has more than doubled its investment in bitcoin, wherein its current holdings are valued more than half of the its market cap of $7.84 billion. At present, Bitcoin is reportedly trading at about $50,000 after falling from its new all-time high over $58,000 on Sunday (21 February). Despite this, CEO of MicroStrategy, Michael Saylor estimates that bitcoin’s price could increase ten times over the upcoming years. Speaking on the investment, Saylor mentioned that it is a part of the company’s twin corporate strategy, under which it aims to expand its software business while acquiring and holding bitcoin simultaneously in anticipation that its price would keep on increasing in the long term. MicroStrategy currently holds more than 90,000 bitcoins, which further strengthens its belief that bitcoin being a widely accepted cryptocurrency can become a dependable store of value, Saylor added. Saylor further stated that the company intends to continue pursuing its strategy of investing in bitcoin with surplus cash. It is also looking forward to issuing debt or equity securities from time to time, subject to market conditions. Sources have confirmed that prior to the latest investment news, Saylor had stated that he believes the market cap of bitcoin would increase to $100 trillion, i.e., 10 times to that of gold. Reportedly, it is worth less than $1trn currently, growing up from less than $100 billion last March. Saylor in this regard stated that once it reaches $10 trillion, it’s volatility will dramatically reduce and as it is moving forward to make $100 trillion mark, the growth rates are expected to decline. Subsequently, the volatility will also fall, which will provide stability to the overall financial system of 21st century. Source credit: https://www.independent.co.uk/life-style/gadgets-and-tech/bitcoin-microstrategy-cryptocurrency-price-prediction-b1807283.html