Michael Saylor, Chairman of MicroStrategy, has disclosed his audacious intentions to buy as much Bitcoin as the market will allow.
During her appearance on “Bloomberg Markets,” Saylor said that MicroStrategy now owns around 153,000 Bitcoin, of which approximately 500 have been acquired since June 30.
Saylor pointed out that the company’s acquisition strategy is motivated by the desire to amass Bitcoin for the benefit of its stockholders. In addition to using cash flows, this method occasionally calls for the issue of debt and equity as long as doing so adds value for common stockholders.
This year, MicroStrategy’s stock has had a significant upswing, rising more than 200%. The corporation looks ready to use this rally’s higher market value to forward its acquisition strategy for Bitcoin. “Our primary use of proceeds is generally just to acquire Bitcoin,” Saylor said.
Interestingly, Saylor notes that the firm has been leveraging its Bitcoin investments thanks to “cheap capital,” with an average cost of capital of 1.6%.
This strategy has produced significant profits when combined with the provision of a dividend to shareholders free of any related management charge.
Saylor said that the firm had produced a 254% performance from the strategy’s launch three years ago, surpassing the main cryptocurrency’s own gain of 145% during the same period.
