Phong Le, Chief Financial Officer of MicroStrategy, revealed that his company will continue to invest in bitcoin despite the recent drop in the USD value of the asset.
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.
Price is not an issue for MicroStrategy
It’s safe to say that the first 25 days of the year have not been kind to bitcoin. The cryptocurrency lost over 20% of its USD value during this time, which sent skepticism into the space, and many began to wonder if and when its price would rebound.
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 buy and hold, so to the extent that we have excess cash flow, or find other ways to raise cash, 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 for other ways to be additive to our shareholders when it comes 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 BTC holdings
The tech company is one of the biggest bitcoin whales and often uses falling price opportunities to buy more assets. His last purchase was at the end of 2021 when he acquired an additional 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.
When asked if he was worried about such a huge portion of the company’s portfolio being allocated in bitcoin, Saylor replied:
“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 major cryptocurrency is so valuable because it’s a “rarity, and they don’t make it anymore.” According to him, it is “the best investment opportunity of our life”.
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.
Late last week, the United States Securities and Exchange Commission rejected MicroStrategy’s bitcoin accounting strategy. Following that, the company’s shares fell almost 18% in 24 hours – the company’s biggest intraday slump since February 23, 2021.
Currently, a single MSTR share trades at around $370, 32% less than the USD value at the beginning of 2022.
