Michael Saylor invests a staggering near-2 billion dollars during market downturn.
MicroStrategy, the business intelligence firm led by CEO Michael Saylor, continues to hold a significant amount of Bitcoin. With a current tally of 528,185 Bitcoin, the company's total holdings are valued at approximately $35.63 billion.
In a recent move, Saylor purchased 22,048 Bitcoin for nearly $2 billion, averaging over $87,000 per coin. This latest acquisition, referred to as 'buying the dip,' comes amidst a bear market for the Bitcoin price, characterised by its reluctance to respond positively to positive impulses.
Saylor remains optimistic about Bitcoin's future, claiming that the digital currency has reached 'escape velocity.' He also believes that 'The box of Pandora has already been opened' in reference to Bitcoin's widespread adoption.
The company's Bitcoin holdings, with an average purchase price of $67,458, still boast a profit of about $8 billion or 23%. However, the latest purchase has caused a paper loss for MicroStrategy, with the current Bitcoin price of around $83,400 putting the company's holdings nearly $4.3 billion in the red.
Meanwhile, the passing of the 'Inflation Reduction Act' by President Biden could potentially impact MicroStrategy. The act introduces a 15% tax on 'book income' of companies exceeding $1 billion. While the act does not specifically impose new taxes on Bitcoin gains earned by MicroStrategy, Bitcoin profits would generally be subject to existing capital gains tax rules under the IRS.
The first repayments of the billion-dollar bonds used to buy Bitcoin won't be due until the fall of 2027. As for the future of Bitcoin, Saylor predicts that the US will aggressively work to become the global crypto hub. If successful, this could potentially force other countries to accept Bitcoin as a global capital unit.
Interestingly, MicroStrategy's Bitcoin holdings are nearly as much as Blackrock's and more than half as much as Satoshi Nakamoto's. However, despite Saylor's substantial investment, the Bitcoin price has not shown immediate signs of recovery.
In an uncertain macroeconomic climate, this strategy by MicroStrategy highlights the growing interest and potential of Bitcoin as a viable investment option, despite the current bear market.
Read also:
- Deepwater Horizon Oil Spill: BP Faces Record-Breaking Settlement - Dubbed 'Largest Environmental Fine Ever Imposed'
- Meta Unveils Ray-Ban AR Display Sunglasses; TikTok Agrees to $200 Million Deal
- Historic downtown temples to receive restoration funds totaling over 25 million pesos
- Cars' Environmental Impact Explained
