Some investors are looking sideways at the long-term capital planning of a company called Microstrategy as Bitcoin fluctuates around the $50,000 mark.
Marie Huillet reports at Cointelegraph that some executives have sold parts of their stakes in Microstrategy recently, although CEO Michael Saylor is reportedly staying the course.
Microstrategy turned heads last year with an aggressive plan to use Bitcoin as its capital reserve assets.
Eventually, the company came to be seen as somewhat of a Bitcoin pure play.
“Virginia-based enterprise software company MicroStrategy has captured the attention of crypto and financial news outlets alike with its CEO’s atypical strategy of going all-in on Bitcoin, beginning in 2020, with some reporters quipping that the company has since morphed into something closer to a Bitcoin (BTC) investment vehicle than a software firm,” Huillet writes.
That was before Bitcoin price cratered, partially due to intimations that the high energy consumption of Bitcoin mining was going to doom that coin’s viability in general markets.
Now, in retrospect, some experts are seeing Saylor’s all-in activity as a little rash.
Nonetheless, it could’ve been worse, according to a writer at Bitcoinist who points out how Microstrategy chose Bitcoin over gold in fleeing traditional value stores. This analysis shows that gold would have been a relative loser, to the tune of 80% of the value created. Nor is that all:
“Bitcoin and MicroStrategy have managed to outperform two of the most important stock indexes, the NASDAQ and the SP500,” the author continues. “The former has a 68.3% profit while the latter records a 54.8% profit since the software company announced its BTC treasury program. MicroStrategy has become a BTC’s price proxy for many companies, banks, and hedge funds looking to legally gain exposure to the cryptocurrency. As Bitcoinist reported, giants such as BlackRock, Capital Group, Morgan Stanley, The Vanguard Group, and others have massive positions in the company.”
Also, Microstrategy is not the only company that chose to use Bitcoin this way. Notwithstanding criticisms from Elon Musk in recent months on Bitcoin’s viability, the Tesla company remains very much invested in that cryptocurrency.
This morning, Bitcoin is trending around $47,000 per coin.