Michael Saylor, the founder of the business intelligence company MicroStrategy and currently the executive chairman in charge of Bitcoin strategy, has revealed the net profit that the company paid to its BTC shareholders last week. He called this a "Bitcoin gift" for the company's shareholders. Specifically, the "Bitcoin gift" worth $299 million has been sent to MicroStrategy (MSTR) shareholders.
Saylor said that last week, the company's treasury operations generated a Bitcoin profit of 0.72%, equivalent to about 3,177 BTC. With BTC price at around $94,000 per Bit yesterday, this profit is estimated to be around $299 million, as a "Christmas gift" for MicroStrategy shareholders.
Through this, the founder of MicroStrategy emphasized the company's commitment to increasing shareholder value through Bitcoin accumulation strategies and generating profits. Effective treasury management combined with a focus on Bitcoin as a store of value has helped the company emerge as a leader among public companies adopting Bitcoin.
In a recent transaction, on Monday, MicroStrategy surprised the financial market by announcing the purchase of Bitcoin worth $561 million at a Medium price of around $107,000 per Bit, in addition to other Bitcoin purchases in the past two months. To date, Michael Saylor's company owns a total of 444,262 BTC, with a total cost of approximately $27.7 billion and a Medium purchase price of $62,257 per BTC.
After rumors that MicroStrategy is planning to issue 10 billion MSTR shares to buy an additional $3 trillion worth of Bitcoin (BTC), Jeff Park, Head of Alpha Strategy at Bitwise Asset Management, has refuted this. Park's tone suggests he does not believe in the feasibility of such a move, given the impractical nature of this speculation.
According to Park, the $3 trillion figure is too large. He believes this is almost impossible to happen, as the total market capitalization of Bitcoin has not yet reached $2 trillion. Therefore, MicroStrategy investing $3 trillion in Bitcoin is not feasible, especially considering that MicroStrategy's market value is only around $85 billion. Park also mentioned the issues that some potential investors may face when holding MSTR shares, especially in the context of Bitcoin price volatility. He referred to a previous article to explain the concerns of investors around MSTR and its price fluctuations compared to the crypto market.
In addition, Park clarified that MicroStrategy's large investment in Bitcoin has caused the company's stock value to be closely tied to Bitcoin price. He noted that if the value of MSTR drops to 0, the value of Bitcoin will also be negatively impacted. However, he also affirmed that even if Bitcoin drops to a record low of $30,000, the stock price of MicroStrategy will still not drop to 0.
Park also emphasized that MicroStrategy has many strategies to expand capital and use leverage to achieve success in a larger market.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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