MicroStrategy continues With Aggressive Bitcoin Purchases, Says Gold Should be Scared of BTC
Michael Saylor's firm, Microstrategy, bought an additional $82.4 million worth of bitcoin roughly a week after revealing a 7000 BTC purchase. On December 9, Thursday, Michael Saylor from his official Twitter account posted a tweet announcing, "MicroStrategy has purchased an additional 1,434 bitcoins for ~$82.4 million in cash at an average price of ~$57,477 per #bitcoin. "As of 12/9/21, we #hodl ~122,478 bitcoins acquired for ~$3.66 billion at an average price of ~$29,861 per bitcoin. $MSTR".
According to the recent SEC (SECURITIES AND EXCHANGE COMMISSION) document, the company has expanded its BTC holdings with the latest acquisition between November 29, 2021, and December 8, 2021, and currently owns approximately 122,478 bitcoin obtained at an average cost of $29,861 per coin, a cumulative evaluation of around $6 billion. At the time of writing, bitcoin is trading at US $48,484.26.
Microstrategy provides business intelligence (BI), mobile software, and cloud-based services. CEO Michael Saylor thinks that bitcoin will evolve into a $100 trillion asset class, stating that the cryptocurrency wins against gold as an asset. "Digital gold is going to replace gold this decade." "I have said it before, bitcoin is going up forever, "He further explained that gold is already threatened by bitcoin.
In an interview with Yahoo Finance Live, Saylor said: "The best thing you could do is sell all $10 trillion of gold and buy bitcoin”. He further pointed out that "gold is a dead rock. It's the worst-performing asset, bar none, no debate. There is no hope for it."
While the American entrepreneur is exceptionally bullish for the exponential growth of cryptocurrency, especially Bitcoin, it has seen a very successful run. BTC prices have surged 63% from last year till now to $47,833. It remains the most prominent cryptocurrency, with a market capitalization that surpassed the $1 trillion mark in 2021, with its price hitting an all-time high of $64,863.10 on April 14, 2021.
Saylor indicates the "buy bitcoin, dump gold" approach has performed remarkably well this year. Investors continue to follow crypto assets because they believe it can outperform during high inflationary periods. Currently, gold prices have plunged about 9% year-to-date. He also asserted that he would continue to put his company's funds where he proclaims.
However, the MicroStrategy CEO is not alone in his bullish prediction for Bitcoin. In his latest research note, Bloomberg Intelligence senior commodity strategist Mike McGlone wrote: "A primary force to reverse expectations for Federal Reserve tightening in 2022 is a drop in the stock market, which may be a bit of a win-win for bitcoin. Bitcoin appears to be on a trajectory for $100,000," and is "well on its way to becoming a digital store-of-value," similar to gold.