Michael Saylor Leads Charge for More Bitcoin Acquisitions

Bitcoin advocate and business magnate, Michael Saylor, known for his bullish sentiment on the digital asset, hinted at a further acquisition of Bitcoin, affirming the strategy that has brought considerable returns to his company, MicroStrategy, over the past three years.

MicroStrategy, as of July 31, boasted a Bitcoin holding of 152,800 BTC, translating to an approximate value of $4.5 billion. According to the company’s filing with the U.S. Securities and Exchange Commission (SEC) on Tuesday, the company plans to utilize the net proceeds from its recent offering for corporate purposes, which prominently include the acquisition of more Bitcoin and maintaining working capital.

The company’s impressive returns are a testament to Saylor’s unique strategy, which leverages cheap capital – with an average cost around 1.6% – to fund Bitcoin investments. Offering yields to shareholders without a management fee, the strategy has brought a notable 254% performance boost since its inception. Meanwhile, Bitcoin’s own value increased by 145% during the same period.

The announcement sparked a noticeable uptick in Bitcoin’s price, rising to nearly $29,800 from approximately $29,200. This positive impact reflects the cryptocurrency market’s response to MicroStrategy’s assertive Bitcoin accumulation strategy, spearheaded by the Bitcoin whale, Saylor.

Despite the general market volatility, Saylor, the former MicroStrategy CEO, remains an unwavering supporter of Bitcoin. His bullish stance appears to be vindicated as the recent Bitcoin rebound has thrust the company back into profitable territory. The leading cryptocurrency has seen an almost 80% year-to-date increase, although it remains below the elusive $30,000 mark amid subdued volatility.

Saylor’s strategy doesn’t only rely on company cash flows but also employs equity and debt issuances from time to time. It’s a plan he believes creates value for the company’s common stock shareholders. This dynamic combination of leveraging investments and utilizing cheap capital has turned out to be a winning formula, yielding robust returns and cementing MicroStrategy’s place at the forefront of corporate Bitcoin investment.