MicroStrategy stockholders correspondence: We will 'vigorously seek' more Bitcoin acquisitions
As per a letter to shareholders from the company's CEO, Michael Saylor, MicroStrategy will not be stopping acquiring and maintaining Bitcoin stock anytime in the future. MicroStrategy CEO Michael Saylor has declared to his business's stakeholders that his company wants to "vigorously pursue" its reserve capital strategy of buying and holding more Bitcoin. According to wallet tracker Bitcoin Treasuries, Saylor's publicly traded firm is the world's largest single-wallet holder of Bitcoin (BTC) with 129,218 BTC. These coins are today worth around $5.1 billion. On April 5, MicroStrategy purchased 4,197 additional coins. In comparison, Tesla, MicroStrategy's holding race runner-up, controls 43,200 BTC worth almost $1.7 billion. Saylor complimented his company's outstanding results in just being the earliest to add Bitcoin to its treasuries and provide value for customers and shareholders in MicroStrategy's 2022 Proxy Statement, which was submitted with the SEC on April 14. MicroStrategy only paid around $3.9 billion for the BTC in its treasury, resulting in a $1.2 billion paper profit margin. "Our parallel approach to purchase and keep Bitcoin has been a phenomenal success," Saylor stated in the letter. The letter also claims that Microstrategy's BTC assets are profitable, but that the company's leaders are having difficulty obtaining liability insurance. As a result, Saylor has paid for the insurance out of pocket. Saylor's 68.1 per cent ownership of MicroStrategy means he can very much do whatever he wants at the firm, which explains why more companies haven't walked in his footsteps. Since 2020, he has been one of the most ardent supporters of Bitcoin, and he utilises his position to reach out to a massive community. On March 29, the MicroStrategy subsidiary of Saylor's software business announced that it will utilise $205 million from Silvergate Bank in a Bitcoin-collateralized loan to purchase additional BTC. In a release, Saylor stated that this was the first time his business has used its BTC assets as "productive collateral." Amid worldwide crosswinds from the conflict, hyperinflation, and rising interest rates, MicroStrategy and Do Kwon's Terra (LUNA) acquired tens of millions of dollars worth of Bitcoins at a time that has helped keep prices stable. Terra's ownership is currently only 800 coins behind Elon Musk's Tesla, which has the second-largest BTC holdings among publicly listed businesses.