Microstrategy Owns 0.7% Of Bitcoin Supply
Few days ago, about 2 days ago to be precised, Microstrategy decided to buy more bitcoin, but this time, the quantity is not as huge as it used to be. This time, the company spent $6 Million to acquire 301 bitcoin. Notice how the amount the company spends on bitcoin reduces. Could it be that they dont have much capital to buy more? Or they are just looking forward to having a round figure of 130,000 bitcoin. The company is currently known as the company with more bitcoin holdings over other companies who have publicly declared their bitcoin holdings.
At this point, its not known if the company’s bitcoin buying action is a very wise one or a very risky non chant decision, because, just few weeks ago, the company was looking forward to selling their stock worth over $500 Million, but never said what they will be doing with such amount. Could it be that they are going to be buying more bitcoin? No one knows, but then, looking at the number of bitcoin held by this company it is amazing to know that this company is currently holding 1 out of every 161 bitcoin. This is a huge force, power and influence this company possess right now. The company has spent almost $4 Billion in buying bitcoin, about $3.98 Billion has been spent in purchasing bitcoin.
The supply of bitcoin is really small, because having a 21 Million supply against 8 Billion people in the world, means that 380 people will have to fight for one bitcoin, meaning that for every bitcoin, we have 380 people trying to have it. For Microstrategy to have 0.7% of the supply should create a big concern, because, this means that this company will be having great market influence on the crypto market. They claim to be holding for a very long time, but what do you think will happen to the crypto market if they decide to do like Tesla who sold their bitcoin when the need to sell came. They can also influence the market as they are currently a big whale in the crypto market, they can do this through pumps and dumps.
Unfortunately for the company stock, the company stock drops anytime they buy bitcoin, should this be a good time to buy some MSTR stock, because, while the company is buying bitcoin to hold, when the price of bitcoin reaches an all time high of $69K, their current bitcoin holding will be worth about $8.97 Billion, which is double the amount they spent to buy bitcoin. If the price of bitcoin reaches $100k, the value of their holdings will be $13 Billion, you see the direction?
Posted Using LeoFinance Beta