MicroStrategy Continues Its Bitcoin Buying Spree, Now Owns 11% of Global Supply
Key Points
- MicroStrategy purchased an additional 3,000 Bitcoins for $155 million, bringing its total holdings to 11% of the global supply.
- This is the company's fifth major Bitcoin purchase since 2020, when it began investing in the cryptocurrency as a way to diversify its cash holdings.
- Other companies following in MicroStrategy's footsteps include Tesla, Square, and PayPal.
MicroStrategy's Bitcoin Purchases
MicroStrategy, a business intelligence and software company, has been a major buyer of Bitcoin in recent months. The company first purchased $250 million worth of Bitcoin in August 2020, and it has continued to add to its holdings since then. With the latest purchase, MicroStrategy now owns 11% of the global supply of Bitcoin. The company's Bitcoin holdings are worth approximately $145 billion. MicroStrategy's CEO, Michael Saylor, is a strong advocate for Bitcoin. He believes that Bitcoin is a "digital gold" that will become a global reserve currency.
Other Companies Investing in Bitcoin
MicroStrategy is not the only company that is investing in Bitcoin. Other companies, such as Tesla, Square, and PayPal, have also purchased large amounts of Bitcoin. This growing institutional interest in Bitcoin is a sign that the cryptocurrency is becoming more mainstream. Bitcoin is now seen as a legitimate investment by many investors.
Risk-Adjusted Returns of Different Asset Classes
The table below shows the risk-adjusted returns of different asset classes over the past 10 years. | Asset Class | Risk-Adjusted Return | |---|---| | Bitcoin | 13.6% | | Stocks | 8.5% | | Bonds | 4.5% | | Gold | 3.5% | | Cash | 0.5% | As you can see, Bitcoin has outperformed all other asset classes over the past 10 years. This is due to Bitcoin's unique properties, such as its scarcity and its decentralized nature.
Conclusion
MicroStrategy's continued investment in Bitcoin is a sign of the growing institutional interest in the cryptocurrency. Bitcoin is becoming more mainstream, and it is likely to continue to grow in value in the years to come.
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