How MicroStrategy Acquired 38,000 Bitcoin?
How did MicroStrategy acquired 38,000 Bitcoin? MicroStrategy CEO made a statement about how they bought 38,000 Bitcoin (BTC).
MicroStrategy, a giant company operating in the business intelligence field, has received 38,250 Bitcoin (BTC) since last month. The company, which traded on Nasdaq and has a market value of $ 1 billion 550 million, announced its first Bitcoin (BTC) purchase on August 11, 2020 with 21 thousand 454 BTC, and the second purchase with 16 thousand 796 BTC on September 14. MicroStrategy CEO Michael Saylor made a statement about how the company made these purchases.
Saylor explained that they made the purchase of 21 thousand 454 BTC with 78 thousand 388 off-chain transactions and then secured the BTC received by cold storage method with 18 on-chain transactions. Saylor says, “Bitcoin scales well as a store of value. According to our model, if Bitcoin is considered a treasury reserve asset, 99.98 percent of all transactions will be off-chain and assets at risk will be held by cold storage 99.92 percent of the time. ”
Informed About the Second Purchase
The CEO also gave information about the second purchase. Saylor stated that they made purchases of approximately 0.19 BTC every three seconds for 74 hours and made 88,617 transactions, and received approximately $ 39,414 BTC per minute.
In fact, CEO Michael Saylor was known for his distaste for Bitcoin. So much so that the CEO made a post on his personal Twitter account in 2013 and the “days of Bitcoin” are numbered. It seems like a matter of time before it shares the same fate as online gambling. ”
So Why Is The Company Buying Bitcoin?
MicroStrategy has announced that it sees Bitcoin and other alternative investments as a method of avoiding inflation. The company stated that the US dollar was weakening and that it would make sense to shift treasury assets to deflationary or less inflationary assets. In addition, Saylor said, “It would not be prudent anymore to keep holding large amounts of dollars.”