In a Keynote address at MicroStrategy World: Bitcoin for Corporations, MicroStrategy Executive Chairman Michael Saylor delivered a masterclass on corporate finance and the power of bitcoin to supercharge corporate balance sheets. Saylor made a point to emphasize Bitcoin as the single solution for capital appreciation in an inflationary environment.

In his speech, Saylor likened the cost of capital to being the benchmark which a company must surpass to increase its purchasing power, arguing that “Bitcoin is the only asset that exceeds the cost of capital. Another way to say that, is everything else is dilutive.”

Further describing the true cost of capital, he noted that the “S&P is the modern surrogate for the cost of capital… If you had to pick one metric and say, what’s the metric that gives you a sense of how rapidly the world currency supply is expanding in dollars? Probably the S&P 500… this is another way to see inflation.”

Saylor went on to emphasize his belief that all assets, except bitcoin, are not accretive to corporate balance sheets despite their general acceptance. In particular, he highlighted the relative underperformance of the silver, gold and US government bonds:

“[If companies] invested in T-bills, they’re going to get 3% after tax against a 12% cost of capital per year. And so you hold $100 billion of capital, you destroy $9 billion of shareholder value a year… The story here is that the bonds don’t hold value, right? They’re awful capital assets. Silver doesn’t work. Gold doesn’t keep up with the cost of capital.”

There Is No Second-Best Crypto Asset

The MicroStrategy Executive Chairman noted key differences between Bitcoin and alternative cryptocurrencies like Ethereum, expressing the importance and necessity of proof-of-work-based consensus in creating a digital commodity.

“You could see the writing on the wall when the spot ETF of Bitcoin was approved in January. By the end of May, you’ll know that Ethereum is not going to be approved. And when Ethereum is not going to be approved, sometime this summer it’ll be very clear to everyone that Ethereum is deemed a crypto asset security, not a commodity. After that, you’re going to see that [for] Ethereum, BNB, Solana, Ripple, Cardano – everything down the stack.”

On the point of Bitcoin’s energy use, Saylor invoked the idea of a “physical linkage to the real world” in Bitcon’s consensus. He described the network as having “raw digital power standing in the way of anybody that would try to undermine the integrity of the network… The network is feeding on electricity, and that creates a decentralizing dynamic that drives all of the network to the end of the grid in the quest of stranded energy.”

It’s Going Up, Forever

Saylor’s conviction and use of physics-based metaphors were present as ever as he spoke on Bitcoin’s price appreciation and continued monetization. “It’s never declining. The chart’s not ever decreasing. It only goes one way. Bitcoin is a capital ratchet. It’s a one-way ratchet. Archimedes said, give me a lever long enough and a place to stand and I can move the world. Bitcoin is the place to stand.”

“There’s no more powerful idea than the digital transformation of capital… No force on earth can stop an idea whose time has come. This is an idea. Its time has come. It’s unstoppable. And so I’m going to end with the observation that Bitcoin is the best. The best what? The best.”

Watch the full MicroStrategy World: Bitcoin for Corporations Day 2 Livestream on the Bitcoin Magazine YouTube Channel

Source: Bitcoin Magazine

The post Michael Saylor Delivers Bitcoin Masterclass To Fortune 1000 Companies appeared first on Crypto Breaking News.

Breaking Microstratgy Acquired 1045 BTC

On Wednesday, business intelligence firm MicroStrategy announced that it had bought an additional 1,045 Bitcoins for a total purchase price of roughly $29.3 million.

According to a recent filing with the United States Securities and Exchange Commission (SEC), the new acquisition was made between March 24 and April 4 at an average price of $28,016 per coin.

This most recent haul brings the company's Bitcoin vault to an astounding 140,000 coins.

Those coins were acquired at an aggregate purchase price of approximately $4.17 billion. The company's average purchase price now stands at $29,803 per Bitcoin.

The bellwether cryptocurrency is currently trading at $28,564 on the Bitstamp exchange, which means that MicroStrategy is yet to break even after facing massive losses in 2022 due to the bear market.

As reported by U.Today, the company also announced a $150 million Bitcoin purchase in late March.

MicroStrategy has been a key player in the corporate adoption of the flagship cryptocurrency, with its initial investment in the cryptocurrency in August 2020.

Since then, the company has continued to expand its Bitcoin holdings, making it the largest corporate holder of digital assets.

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CoinShares report highlighted that the week ending March 24 noted the highest inflows since July 2022.

MicroStrategy holds over $4 billion worth of Bitcoin after adding 6,455 BTC since last month.

Bitcoin price is trading at $26,923, struggling to breach $28,500 for nearly two weeks now.

Bitcoin has been noting increasing institutional interest for the last few days as whale movement on the network grew. At the same time, another major bitcoin holder MicroStrategy also dove back into accumulating BTC suggesting that the cryptocurrency could be taking a bullish turn.

MicroStrategy is back to acquiring Bitcoin

In a regulatory filing on March 27, Michael Saylor’s company announced that MicroStrategy had acquired about 6,455 BTC for $150 million over the last two months. The average price of each Bitcoin stood at around $23,238, bringing the total BTC holdings of the firm to 138,955.

This is the first purchase announced by MicroStrategy this year, as the last purchase was noted in December 2022, when the company had added about 2,500 BTC. Valued at $4.14 billion, the average price of each Bitcoin held by Saylor’s organization is close to $29,817. The current price of the biggest cryptocurrency in the world is around $26,780, which shows that Microstrategy’s investment is still at a loss.

Bitcoin price needs to be at a nine-month high and breach the critical support at $28,567 for the company to break even on its investment. However, BTC is treading in the opposite direction at the time of writing, trading at $26,923, falling by nearly 4%. Struggling to breach the critical resistance at $28,567 for about 14 days now, Bitcoin would need a push from investors to climb back to $30,000.

If the price falls further and loses the support at $24,943, it would be on the path to testing the critical support at $22,219. Falling through it would invalidate the bullish thesis, potentially sending Bitcoin price to $20,000, marking a 20% crash.

Rising institutional interest could save Bitcoin from crashing

MicroStrategy’s move is one of the first few indications that institutions might be back  investing in the crypto market and Bitcoin again. The CoinShares report highlighted that the weekly crypto asset flow for the week ending March 24 hit an eight-month high of $160 million.

Of this $160 million, $127.5 million was directed towards Bitcoin. Although considering the year-to-date flows, the asset is still noting a macro outflow of $104 million but rising institutional interest could flip that over the next few weeks.

This changing interest was also observed a few days ago in the form of whale movement as big wallet holders’ activity became much more significant. As observed on-chain, the transactions worth more than $100,000, denoted to be whale activity, shot up to a 15-week high.

Acquisitions by large wallet holders are generally a signal that the cohort is expecting a price rise going forward, which usually plays out in their favor.

Thus Bitcoin investors looking to go long should look out for the opportunity to jump in should the pattern repeat this time around as well.

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In 2020, when the world was grappling with the pandemic-induced economic downturn, MicroStrategy, a leading business intelligence and analytics company, made a bold move. The company invested $250 million in Bitcoin, a digital currency that has been the subject of much debate and speculation. MicroStrategy’s CEO, Michael Saylor, saw Bitcoin as a hedge against inflation and currency devaluation and a store of value. Since then, MicroStrategy has continued to invest in Bitcoin, purchasing over $2 billion worth of digital currency, which represents a significant portion of its overall value. In this article, we will explore what Bitcoin MicroStrategy is, how this strategy works, the benefits of MicroStrategy for the crypto market, whether it will become a source of a bullish trend for the crypto market, and the motives behind making this strategy, and whether people are happy with it.

What is Bitcoin MicroStrategy?

MicroStrategy’s Bitcoin strategy involves using its balance sheet to purchase Bitcoin as a reserve asset. The company’s primary business is providing business intelligence and analytics software and services to companies. However, in 2020, the company began to invest in Bitcoin as a way to diversify its balance sheet and protect against inflation and currency devaluation. MicroStrategy’s CEO, Michael Saylor, has been a vocal proponent of Bitcoin, calling it "digital gold." He believes that Bitcoin can act as a hedge against inflation and currency devaluation and as a store of value.

How does this strategy work?

MicroStrategy has purchased Bitcoin through its subsidiary, MicroStrategy Services Corporation. The company’s Bitcoin holdings are stored in a digital wallet secured by a private key. MicroStrategy has also issued debt to finance its Bitcoin purchases. In December 2020, the company raised $650 million through a bond offering, which it used to purchase more Bitcoin. The company’s Bitcoin holdings are now worth over $5 billion, and its investment has proved to be a successful one so far.

What are the Benefits of MicroStrategy for the Crypto Market?

MicroStrategy’s investment in Bitcoin has brought attention to digital currency and its potential as an investment and store of value. It has also shown that a publicly traded company can hold Bitcoin as a reserve asset, which could lead to more companies following suit. This could increase demand for Bitcoin and drive up its price. Additionally, MicroStrategy’s investment in Bitcoin has been seen as a validation of the digital currency by some investors and analysts, which could lead to increased adoption and use of Bitcoin.

Will it become a source of a bullish trend for the crypto market?

MicroStrategy’s investment in Bitcoin has been viewed as a potential catalyst for a bullish trend in the crypto market. However, it is important to note that Bitcoin is a highly volatile asset, and its price can fluctuate significantly in a short period. MicroStrategy’s investment in Bitcoin may drive up its price temporarily, but it is not a guarantee of a sustained bullish trend in the crypto market.

What is the motive behind making this strategy?

The motives behind MicroStrategy’s Bitcoin strategy are to diversify its balance sheet, protect against inflation and currency devaluation, and invest in a potentially valuable asset that can appreciate over time. MicroStrategy’s CEO, Michael Saylor, has been a vocal proponent of Bitcoin and believes it can act as a hedge against inflation and currency devaluation. Additionally, MicroStrategy’s investment in Bitcoin has garnered significant attention and interest from investors and analysts, potentially leading to increased value and attention for the company.

Are Crypto Investors happy with this strategy?

The response to MicroStrategy’s Bitcoin strategy has been mixed. Some investors and analysts have praised the company for its bold move and for being ahead of the curve in recognizing the potential of Bitcoin as an investment and store of value. However, others have criticized the strategy as risky and irresponsible, citing the volatility of Bitcoin and the potential for significant losses. Additionally, some investors have questioned whether MicroStrategy should be using its balance sheet to invest in Bitcoin rather than focusing on its core business.

Despite the mixed response, MicroStrategy’s Bitcoin strategy has been successful so far. The company’s Bitcoin holdings have appreciated significantly in value, and its investment has helped to increase awareness and adoption of Bitcoin.

Positive and Negative Turns of Microstrategy

MicroStrategy’s Bitcoin strategy may also have implications for the broader economy. As more companies and individuals invest in Bitcoin, it could lead to a shift away from traditional financial institutions and central banks. Additionally, the increasing use of Bitcoin and other cryptocurrencies may lead to regulatory and legal challenges, as governments seek to ensure the stability and security of their financial systems.

MicroStrategy’s Bitcoin strategy is a bold move that has captured the attention of investors and analysts alike. While it may be seen as a risky bet by some, it has proven to be a successful investment so far, and it has helped to increase awareness and adoption of Bitcoin. Whether MicroStrategy’s Bitcoin strategy will become a source of a bullish trend for the crypto market remains to be seen, but it has certainly sparked interest and discussion about the potential of cryptocurrencies as a store of value and investment.

As more companies and investors become interested in Bitcoin and other cryptocurrencies, MicroStrategy’s Bitcoin strategy may be seen as a trailblazing move. It has shown that a publicly traded company can hold Bitcoin as a reserve asset and that there is potential for significant value appreciation. However, it is important to note that investing in Bitcoin comes with significant risks, and investors should carefully consider their investment goals and risk tolerance before investing.

MicroStrategy’s Bitcoin strategy may also have implications for the broader economy. As more companies and individuals invest in Bitcoin, it could lead to a shift away from traditional financial institutions and central banks. Additionally, the increasing use of Bitcoin and other cryptocurrencies may lead to regulatory and legal challenges, as governments seek to ensure the stability and security of their financial systems.

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