MicroStrategy founder Michael Saylor speaks at the Bitcoin 2021 conference in Miami on June 4, 2021.
Treasurer | Noor Photo | Getty Images
MicroStrategy shares rose more than 8% on Friday after founder Michael Saylor said the company purchased an additional $1.1 billion worth of Bitcoin.
The stock is up 24% this week and is up 124% this year.
Seiler said in Posts on social media platform MicroStrategy’s average purchase price in the four years it has been buying Bitcoin is $38,585 per coin. Bitcoin is currently trading at nearly $60,000.
The 244,800 Bitcoins held by MicroStrategy are worth $14.6 billion.
MicroStategy was founded in 1989 as an enterprise software and cloud-based services business, but its value is now almost entirely tied to its ownership of Bitcoin, effectively making the company a proxy for the world’s largest cryptocurrency. It is reportedly the largest corporate holder of the asset Bitcoin Treasury Bond.
Saylor added in Friday’s post that the “BTC yield” indicator launched by MicroStrategy is 17% this year. The figure shows that the company created 17% value for shareholders by selling shares to buy Bitcoin.
“We’re basically giving people a different type of exposure to Bitcoin,” Thaler told CNBC this week. “MicroStrategy’s mission is to securitize Bitcoin and be the interface between traditional mainstream investors and Bitcoin. institutional bridge.”
Even after this week’s gains, MicroStrategy shares are still down about 26% from their March highs. The stock closed Friday at $141.47.
But MicroStrategy has far outperformed Bitcoin, which is up 35% this year. Owning MicroStrategy is a way to invest in Bitcoin, but with a variety of attributes, such as increased leverage or downside protection, Saylor said.
“A lot of people don’t want to own Bitcoin or can’t own Bitcoin,” Thaler said. Someone will say, “Give me the volatility of the S&P and half the performance of Bitcoin and I’ll be perfectly happy,” he said.
About The Author
