MicroStrategy CEO Michael Saylor has confirmed that his company has purchased an additional 1,434 bitcoins for $82.4 million in cash at an average price of $57,477. The latest BTC purchase comes as Saylor declares that ‘cash and credit are crumbling.’
As of Dec 9, the MicroStrategy holds 122,478 bitcoins, acquired for $3.66 billion at an average price of $29,861. At the time of press, the value of MicroStrategy’s bitcoin holdings is $6.08 billion. This means that MicroStrategy has recorded a healthy $2.42 billion profit from its bitcoin acquisition strategy.
In a Wednesday interview on YouTube, Saylor explained why bitcoin is so preferable to the CEO compared to holding cash reserves.
“Every company on Earth is sitting on a balance sheet that is normally cash and credit. With a few exceptions, everybody is holding some kind of US dollar or Euro or the local fiat currency, and if they want an alternative to that they’re holding low-risk debt, sovereign debt – and if they’re really risky they’re holding some other debt.
“So that’s cash and credit, and cash and credit are crumbling. They’ve always been crumbling, but now they’re crumbling at a faster rate. In good times they’re crumbling at 7% a year, and in bad times they’re crumbling 10 or 15 or 20% a year. In horrific times, like if you’re in Venezuela, Argentina, Lebanon it’s crumbling at 60-80% a year. That’s hyperinflation.
“A year ago we [MicroStrategy] were staring at a balance sheet with $500 million dollars of cash and credit and it looked like it was almost certainly going to crumble at a rate of 15% a year for four years and that drove us to discover bitcoin.”
The MicroStrategy announcement comes in the same week as Congress heard testimony from executives at Coinbase, Circle, FTX, Bitfury, Paxos, and the Stellar foundation. Following the hearing, Saylor declared that bitcoin was the real winner.
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