American business intelligence and software development firm, MicroStrategy Inc has doubled down on its bullish moves on Bitcoin (BTC) again. Just days after the firm purchased $1 billion worth of the cryptocurrency, it has bought an additional 328 of the coins at an average price of approximately $45,710 per BTC. This latest transaction is valued at $15 million.
The firm’s Chief Executive Officer, Michael Saylor also made the announcement via his Twitter handle;
“MicroStrategy has purchased an additional ~328 bitcoins for ~$15.0 million in cash at an average price of ~$45,710 per #bitcoin. As of 3/1/2021, we #hodl ~90,859 bitcoins acquired for ~$2.186 billion at an average price of ~$24,063 per bitcoin. $MSTR.”
MicroStrategy is arguably a leader to watch in terms of aggressive Bitcoin adoption, a move the firm has adhered to since it’s revealed its Treasury Reserve Policy will be dominated by Bitcoin. The company’s beliefs in the superiority of BTC as a better store of value to fiat dollar and other asset types has also stirred the company to organize orientation for other public company CEOs who are looking to make similar moves.
MicroStrategy’s Bet, Pain, or Gain
While the strides of MicroStrategy have been resounded as bold and daunting by proponents of the digital currency, a host of others believes the move may end in avoidable risks if Bitcoin collapses or any regulatory issues affect its adoption in the near to long term.
The company on its part has reiterated its position to hold Bitcoin long term, and with the influx of mainstream adoption swarming the cryptospace, the company’s positivity about the digital currency is all but bolstered.
Additionally, the prospects of MicroStrategy’s bet on Bitcoin may not bar its dividends in the short term as the market’s volatility can erode its price gains in the short term. But with time, stability is bound to guarantee maximum returns in due course.
Gold Not As Attractive
An alternative to consider in the midst of an economic downturn is gold, a precious metal that has served as a good store of value for decades. Michael Saylor however revealed recently that he chose Bitcoin over Gold because the latter is not as compelling as the former, a position many in the world of finance has also acknowledged.
Per his words;
“The returns on gold didn’t look nearly as compelling as Bitcoin. So we eventually found crypto because, in essence, in the crypto world you can create a digital gold—and Bitcoin is that digital gold. And so if you’re looking for a non-fiat derivatives store of value in an inflationary environment, that’s logical that you would settle upon Bitcoin as digital gold.”
Like Saylor, many conservative investors are beginning to ditch gold for the relatively new asset