Phong Le – Chief Financial Officer of MicroStrategy – revealed that his firm will continue investing in bitcoin despite the recent plunge of the asset’s USD value.
In line with the prices of most crypto assets, the shares of the Nasdaq-listed company have also been on a downtrend since the beginning of 2022.
The Price Is Not an Issue for MicroStrategy
It is safe to say that the first 25 days of the year have not been kind to bitcoin. The cryptocurrency has lost more than 20% of its USD value during that period, which propelled skepticism in the space, and many started wondering whether and when its price would go up again.
The executives of the business intelligence software MicroStrategy, however, are not concerned. In a recent interview, the CFO of the company – Phong Le – asserted that the company will keep increasing its BTC holdings this year and that concept is not related to the asset’s short-term price movements:
“Our strategy with bitcoin has been to buy and hold, so to the extent we have excess cash flows, or we find other ways to raise money, we continue to put It into bitcoin.”
Furthermore, MicroStrategy has plans to purchase bitcoin-backed bonds if the market becomes more liquid. Le expects this to happen in 2022 or 2023:
“We are constantly looking at other ways to be additive to our shareholders as it relates to bitcoin.”
A few days ago, Michael Saylor – a prominent BTC bull and CEO of MicroStrategy – expressed the same viewpoint. He asserted that the Nasdaq-listed company had adopted a bitcoin standard, according to which it would keep converting its cash flows into BTC. In addition, the firm will purchase portions of the digital asset with debt, as well, Saylor reassured.
MicroStrategy’s BTC Holdings
The tech company is one of the largest bitcoin whales and often uses price dip opportunities to buy more of the asset. Its latest purchase came at the end of 2021 when it acquired another 1,914 BTC worth $94 million (at the time of the transaction).
The whole stash of the company stands at 124,391 BTC, which calculated at today’s prices equals approximately $4.5 billion. MicroStrategy’s average price on its purchases is around $30,159 – nearly $6,000 less than the current price of a single coin.
Asked whether he is concerned that such a considerable amount of the company’s portfolio is allocated in bitcoin, Saylor answered:
“It actually gives me great comfort. I don’t really think we could anything better to position our company in an inflationary environment than to convert our balance sheet to bitcoin because we basically built a balance sheet on a non-sovereign store of value that’s not a currency derivative.”
He opined that the leading cryptocurrency is so valuable because it is a “scarcity, and they are not making any more of it.” In his view, it is “the best investment opportunity of our lifetime.”
MicroStrategy’s Shares Nosedived
The cryptocurrency industry is not the only sector deep in red in the last few days. Global markets and shares of some renowned companies have also fallen significantly.
At the end of last week, the US Securities and Exchange Commission rejected MicroStrategy’s bitcoin accounting strategy. Following that, the firm’s shares dropped by nearly 18% in 24 hours – the company’s biggest intraday collapse since February 23, 2021.
Currently, a single MSTR share trades at around $370, 32% less than the USD value at the beginning of 2022.
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