MicroStrategy CEO talks about the company's investment plans

03.05.2021 |

The CEO of analytics software provider Michael Saylor spoke about the company’s future investment plans. MicroStrategy, whose shares are traded on the Nasdaq exchange, intends to continue building up its bitcoin position, which could take up to 100% of its free liquidity.

According to last year’s economic report, the software supply managed to increase profits by one and a half times, and the total income increased by 10%. At the same time, on the stock exchange, the company’s stock was showing strong growth, and the target debt securities to buy the first cryptocurrency were bought out the same day as the sale was launched. All of this instills confidence in management that the current investment strategy was chosen correctly.

That said, the report does not reflect the so-called paper returns from investing in digital gold. But thanks to the openness of the data and the transparency of bitcoin technology, you can do your own analysis. According to the summary table, which compiles data on public companies’ investments in cryptocurrencies, MicroStrategy ranks solidly first in terms of the volume of digital assets purchased. If we take into account the current value of bitcoins on the online exchange and the company’s share price on Nasdaq, more than 80% of the software provider’s capitalization is invested in digital gold. At the same time, the amount of purchase of cryptocurrency is just over two million dollars, and the current value exceeds five billion, which means the growth of paper profit more than twice. Thus, the management’s confidence in the right investment strategy is supported by real numbers.