MicroStrategy Incorporated is an American Company who focus on offering software catering to cloud-based services. The mobile software and cloud-based services offered by Microstrategy are focused on delivering tools and strategic apps required for Business Intelligence.
Business intelligence combines business analytics, data mining, data visualization, data tools and infrastructure, and best practices to help organizations make more data-driven decisions.
Data-driven decision-making (DDDM) is defined as using facts, metrics, and data to guide strategic business decisions that align with your goals, objectives, and initiatives.
Strategic decisions have major resource propositions for an organization. These decisions may be concerned with possessing new resources, organizing others, or reallocating others. Strategic decisions deal with harmonizing organizational resource capabilities with the threats and opportunities.
It just looks like Bitcoin is an important resource proposition for Microstrategy Inc. The Business Intelligence guys are probably sure of what they are getting in terms of investing in Bitcoin.
At the height of the crypto market collapse, Microstrategy bought 489 Bitcoin worth about 10 million between May 3, 2022 through June 28 2022 for about $20, 817 each. These numbers were reported in the filings made to the Securities Exchange Commission.
The company began buying Bitcoin for its balance sheet in August 2020 and ever since they have been buying, buying, and buying. They now hold approximately 129,699 Bitcoins. They bought it all at an average price of $30,664 per coin for nearly $4 billion. This means they are roughly at 33% considering the current market price and their purchase price.
The criticism now is that the Microstrategy’s Bitcoin bet looks shaky and many feel the company will almost go under water.
Phong Le, MicroStrategy’s president and CFO, on a May 3, 2022 conference call stated, “We view our Bitcoin holdings as long-term holdings and we do not currently plan to engage in sales of Bitcoin.”
When MicroStrategy Inc. began buying Bitcoin in bulk in the summer of 2020, CEO Michael Saylor stated that he was buying bitcoin because inflation would make cash worthless.
Why would inflation make cash worthless? The price of products and services increase over time. So, the investor is losing value when the inflation rate exceeds the interest earned on a savings or checking account. The Consumer Price Index is used to measure inflation in the United States.
To protect investments from inflation, Microstrategy considers Bitcoin as an important store of value – despite the volatility and crazy price collapse.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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