MicroStrategy “Splurges” On Bitcoin, Pays Off Loan At A Discount
Bitcoin’s recent surge to all-time highs has been a boon to Bitcoin holders everywhere – and business intelligence firm MicroStrategy has leapt onto the bandwagon with an impressive Bitcoin purchase of its own.
6,455 BTC And A Partridge In A Pear Tree
MicroStrategy has purchased an incredible 6,455 BTC at an average price of approximately $15,964 per BTC! That’s an eye watering total cost of $104,323,329 of Bitcoin.
But it didn’t stop there! As part of their boldness, the company also used the newly aquired “cryptoassets” to pay off a $205 million loan at a whopping 22% discount, meaning the loan was repaid at a mere $154 million.
A Gamble That Paid Off?
The gamble was a bold one for a publicly traded “blue-chip” company to make, raising eyebrows but also the potential for a huge reward.
The potential reward not only paid off the loan, but also gives MicroStrategy an influx of Bitcoin that can:
- Help protect against inflation – When the US dollar weakens, investments in hard assets like gold, silver, and Bitcoin stand to benefit.
- Provide a hedge against macroeconomic uncertainty – As we continue to face the global COVID-19 pandemic, Bitcoin could be seen as a safe bet.
- Offer a great return on investment – MicroStrategy is betting the Bitcoin bull run has only just begun, and with its price already reaching over $49,000 per coin, the potential for growth is definitely there.
A Brave Move That Just Might Pay Off
At the moment, it’s impossible to say whether this move will pay off for MicroStrategy or not. In the short term, the company has used Bitcoin to pay off a loan at a huge discount, but long-term gains really depend on the Bitcoin market.
Nevertheless, MicroStrategy’s move shows just how far mainstream acceptance of cryptocurrency has come, with a major blue-chip company investing so heavily in Bitcoin. Who knows, maybe their gamble will pay off in spades!
All jokes aside, it’s definitely a move to keep an eye on. We’ll just have to wait and see how this “micro-strategy” plays out for MicroStrategy!
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