MicroStrategy is on the path to becoming the largest commercial Bitcoin reserve in the world. The transformation was led by MicroStrategy CEO Michael Saylor. To this end, the latest company developments also reflect a continuation of the Bitcoin initiative to become stronger during the upcoming months. A recent letter for the shareholders of the company conveys a clear message.
Saylor claimed in a letter addressed to the shareholders that the company is ready to keep acquiring more Bitcoins and hold its Bitcoin reserves. MicroStrategy is a public listed organization that currently holds around 129,218 Bitcoins in a singular wallet. At the current market value, MS Bitcoin reserves are worth $5.1 billion. The company recently purchased an additional 4,197 Bitcoin this month.
| Name | Price | 24H (%) |
|---|---|---|
 Bitcoin(BTC) | $88,630.00 | -1.91% |
 Ethereum(ETH) | $3,048.18 | -3.27% |
 Dogecoin(DOGE) | $0.361862 | -9.81% |
 Cardano(ADA) | $0.66 | 16.65% |
 Polygon(MATIC) | $0.367451 | -0.36% |
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Recently, Saylor claimed in a proxy statement for SEC filing that he is proud to be associated with the organization that decided to add Bitcoin to its commercial reserves before anyone else in the world. MS used the cost averaging method for adding more Bitcoins to their commercial reserves, which means that the company was able to make $1.2 billion in profits spending only $3.9 billion on their BTC purchases.
The letter further reads that thanks to Bitcoin, the company has managed to remain in the green zone despite factors like COVID and other economic crises. However, MS struggled with obtaining liability insurance that promoted Saylor to pay for the insurance from his finances. It is worth noting that Saylor owns around 68.1% of MS shares, granting him visible autonomy over the company decisions.
MicroStrategy Plans to Use Bitcoin as Collateral
Last month, MS planned to use Bitcoin collateral loan worth $205 million from Silvergate to purchase more Bitcoins. Saylor added that the software-creating organization is going to use its commercial Bitcoin reserves for the first time as productive collateral. Do Kwon, CEO of Terra LUNA, is another company head who has proceeded to purchase massive amounts of Bitcoins despite the economic setbacks.
Another company that recently holds a massive number of Bitcoin reserves is Tesla under CEO Elon Musk. Tesla Bitcoin reserves are only second to MS in terms of volume sitting at a total of 43,200 Bitcoins with an estimated market value of $1.7 billion.
