Business Intelligence firm MicroStrategy’s Bitcoin holdings increased in value by 21% in slightly less than 3 months and are now worth half a billion dollars. The company’s investment reaped huge returns as the price of Bitcoin surged in the past few weeks.
A big jump for the firm
In August and September of this year, MicroStrategy invested $425 million in Bitcoin. That holding has appreciated in value by 21% and is now worth $517 million. Michael Saylor, the CEO of the business intelligence firm has been going bullish on Bitcoin in 2020. He frequently brings out the ‘digital gold’ analogy of Bitcoin.
This comes after years of being skeptical about the world’s largest digital currency. In 2013, Saylor compared Bitcoin with online gambling and said that its days were numbers. He said that the currency will be gone in a few years.
A big turn for the company
However, after seven years, his firm is going strong on Bitcoin and is one of the biggest supporters of the digital asset. They started investing in Bitcoin on August 11 with a $183 million purchase. After a month, they invested another $183 million in the coin which brought the total invested amount to $425 million, bringing 38,250 BTC to the firm.
Since Saylor tweeted about Bitcoin’s eventual demise in 2013, the price of the cryptocurrency has gone up 15x. He and MicroStrategy have now started focusing extensively on the coin. This is because of the long-term value generation of the coin. Appearing in the show of the well-known podcaster Anthony Pompliano, Saylor said that Bitcoin can work as the ultimate hedge against inflation. He also said that it is a thousand times better than gold.
When the company first made its $250 million investment in the coin, Saylor pointed out that the brand recognition, vitality of the ecosystem, global acceptance, network dominance, community ethos, technical utility, and resilience of the underlying architecture are some of the reasons why the firm believes in Bitcoin.