How MicroStrategy's Bitcoin Purchases Have Paid Off
Bitcoin as a Leading Investment
MicroStrategy, a business intelligence company, has made a name for itself as a leading investor in Bitcoin. As of June 21, 2021, the company holds approximately 105,085 bitcoins, which were acquired at an aggregate purchase price of $2.741 billion. This is a significant investment, considering that the total supply of Bitcoin is limited to 21 million coins.
MicroStrategy's Strategy
MicroStrategy's investment strategy is based on the belief that Bitcoin is a safe haven asset that will continue to appreciate in value over time. The company believes that Bitcoin is a better investment than traditional assets such as stocks and bonds, which are subject to inflation and other risks.
Performance of Bitcoin Investment
MicroStrategy's investment in Bitcoin has paid off handsomely. The company's Bitcoin holdings are now worth approximately $5.8 billion, a gain of over $3 billion since the initial purchase. This represents a return of over 100% in less than two years.
Reasons for Success
- Bitcoin's scarcity: With a limited supply of 21 million coins, Bitcoin is a scarce asset that is not subject to inflation.
- Increasing demand: Bitcoin is becoming increasingly popular as an investment, which is driving up its price.
- Institutional adoption: Major companies and institutions are starting to invest in Bitcoin, which is further increasing its legitimacy.
Conclusion
MicroStrategy's investment in Bitcoin has been a resounding success. The company's early investment in the cryptocurrency has paid off handsomely, and it is now one of the largest holders of Bitcoin in the world. As Bitcoin continues to grow in popularity and adoption, MicroStrategy's investment is likely to continue to appreciate in value.
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