What is micro strategy? Get to know MicroStrategy
Whenever we hear news about small and large purchases of Bitcoin whales, Micro Strategy Company is in the headlines. In the last few years, MicroStrategy started buying BTC and now it has become one of the biggest whales in the market. This group is one of the digital currency investing companies that is currently both a supporter and a threat to the crypto market. The number of bitcoins collected by MicroStrategy has now exceeded 130,000. Selling this amount in the market, especially when the price of BITCOIN is low, can cause a heavy blow. For this reason, it is better to know what micro strategy is and how important it is to follow the news about this company in traders’ investment.
What is micro strategy?
American company MicroStrategy Incorporated It was established in 1989 and services like Business Intelligence, Mobile software And Cloud services Offers. Business intelligence refers to the strategy and technologies that the company uses to analyze the important data of a business. MicroStrategy develops software to analyze external and internal data related to businesses, with the aim of making sound business decisions. Some of its programs are specific to mobile phones and are used by users in general.
Introducing the founders of MicroStrategy
Company in 1989 by Michael J. Silver (Michael J. Saylor) started working then Sanju Bansal (Sanju Bansal) and Thomas Farr (Thomas Spahr) joined this company as a founder. Microstrategy is a public company headquartered in Tysons Corner, Northern Virginia, USA. Michael Silver stepped down as CEO on August 8 but remained as chief executive officer of MicroStrategy. Currently, after 33 years since the establishment of this company, Silver is still working as the chairman of the board of directors of Micro Strategy.
He announced in a statement that he buys $100 of Bitcoin every second and in June 2022 tweeted: “Unlike other CEOs who usually avoid talking about their holdings, I personally hold 17,732 Bitcoins. “
Activity history of Micro Strategy Company
MicroStrategy’s activity in 1989 by signing a $250,000 consulting contract with the company DuPont officially started. Michael Silver used this money to set up an office space in Wilmington, Delaware, USA. The company began producing software for data mining and business intelligence using linear mathematics. Using this technology, they were able to attract many large clients and sign multi-million dollar contracts.
Micro Strategy Company in 2019 is the most advanced analytics platform in the world 2019 MicroStrategy to face Free provided to users. A year later, it’s time to 2021 MicroStrategy It came with a completely new design that was welcomed by many users and was able to attract the attention of many large companies and achieve unparalleled success.
Start Microstrategy Investing in Bitcoin
In the summer of 2020, MicroStrategy decided to invest 250 million dollars in the world’s first digital currency, BTC. The company bought the digital currency Bitcoin with the aim of reducing the efficiency of holding cash, the weakening of the dollar and other macroeconomic factors globally, and an asset with a suitable store of value. After that, the company continued to buy hundreds of millions of BITCOIN heavily, which shows that Michael Silver was very interested in Bitcoin. This can be seen from his words and the company’s frantic effort to accumulate this cryptocurrency.
Currently, the number of bitcoins of this company is more than 130 thousand. MicroStrategy is now considered one of the main Bitcoin whales, and its continued accumulation has some crypto analysts worried. If for any reason, for example, reaching the desired profit limit or going bankrupt due to wrong business policies and strategies, the micro strategy company sells a large part of its BTC currency, this event will affect the entire crypto market.
On the other hand, the stock value of Micro Strategy has been affected by the numerous and sometimes severe fluctuations of the digital currency market due to heavy investment in Bitcoin. For example, studies show that the value of this company’s shares has halved from $1,300 to $629 within 3 weeks after the fall of BITCOIN. At that time, Microstrategy had about 91,000 units of Bitcoin.
In 2021, despite the fact that the company’s financial balance sheet was weakened, Michael Silver still did not stop buying and decided to accumulate another 400 million dollars of BTC by raising funds through the issuance of bonds. At that time, the number of bitcoins of this company reached 92 thousand units and this number was worth 3.3 billion dollars in those days. Although MicroStrategy was able to receive 1.5x earnings, this profitability did not prevent its undervalued balance sheet and increasing debt burden due to overinvestment in BITCOIN. MicroStrategy’s stock price has again fallen by 63% compared to a few months ago. At that time, China began a severe crackdown on the Bitcoin mining industry, which caused the price of BTC to drop from a new all-time high of $69,000 to $30,000 in a short period of time.
But this crash did not diminish Michael Silver’s interest in BTC and he believed that this currency would pave the way for his company. A month after deciding to raise funds through the issuance of bonds with the aim of buying digital currency, it announced that it has raised more than 500 million dollars. A few weeks later, he announced that he has decided to use the proceeds from the sale of his shares to buy Bitcoin.
What effect does microstrategy support have on bitcoin’s price trend?
Some crypto analysts believe that MicroStrategy is currently the biggest risk for Bitcoin and the entire crypto market. This digital currency whale with more than 130,000 bitcoins increases the risk of investing in this currency.
Bitcoin digital currency is designed so that no person or company can influence it. For this reason, its creator, Satoshi Nakamoto, kept his identity a secret so that news about him would not affect its price. But in the last few years, we have seen the emergence of influential figures in cryptocurrency, which is moving crypto away from the path that Satoshi Nakamoto had in mind.
Accumulating a large amount of a digital currency in the hands of a person or company, even with good intentions to protect that asset, can have very dangerous consequences. For example, the news of the bankruptcy of Microstrategy will give a hard blow to the body of Bitcoin. Michael Silver is currently at the top of BTC’s biggest losers list, losing billions of dollars, so let’s hope his investment strategy doesn’t fail again.
The CEO of MicroStrategy is waiting for $100 trillion Bitcoin!
Michael Silver believes that BITCOIN will soon reach the total value of 100 trillion dollars. Currently, BTC’s market cap is around $322 billion, which is $11 trillion for gold, which is the most widely used store of value asset in the world. The CEO of Microstrategy has claimed that the Bitcoin market is experiencing a 100-fold growth and is winning against gold as a store of value. He also claims that he does not care about the strict rules of the crypto field.
Accumulation of bitcoin by micro strategy continues
Microstrategy’s quarterly earnings report shows that their net loss of $27.1 million in the third quarter of 2022 has narrowed, while the company has continued to increase its Bitcoin reserves in its portfolio despite the disappointing market situation. The company announced that it currently holds 130,000 BTC, which represents 0.62% of the total Bitcoin that has been injected into the market so far.
The company wants to continue the long-term strategy of holding BITCOIN and announced: “We have not sold any bitcoins to date, and in order to continue our strategy, we are looking to buy and hold it for the long term. We do not intend to sell now. Our company has a long-term view on this issue and our principle of work will not be affected by the short-term fluctuations of Bitcoin in the market.
Micro strategy invests properly
In this article from Valx, we examined what micro-strategy is and what effect its investment has on Bitcoin. The activities of this company are in the field of producing mobile phone software and providing services based on cloud spaces, but from 2021 and 2022, it strictly follows the policy of buying Bitcoin. According to published data, Michael Saylor is among the top 100 owners of BTC and is considered a powerful whale. Traders who intend to invest in this currency should know that if the Micro Strategy company decides to leave the market, this digital currency will be hit hard, so it is better to follow this person’s investment decisions.
How often do you follow the news of this company? What do you think is the future of their decisions?
What is written micro strategy? Get to know MicroStrategy company for the first time on Wallex blog. appeared.