MicroStrategy plans to purchase additional bitcoins reserves for surplus money
Nasdaq listed Bitcoin investor MicroStrategy just showed its investors that it plans to acquire an “additional bitcoins reserves” with excess liquidity of the company during the third quarter of 2 0 2 0 revenues call its capital allocation plans.
As part of its forward-looking plan, the company said it “will use bitcoin as the Treasury’s main reserve asset, buying additional bitcoins reserves for cash surpluses, depending on market conditions and business needs.” The firm raided investment in bitcoins when it pumped $2 5 0 million to buy a major digital asset.
In the income statement, MicroStrategy noted a cumulative impairment loss of $4 4.2 million since the first acquisition of BTC, with an average book value of $1 1,1 1 1 at the time, compared with $9,9 5 4 that was valued at the end of the third quarter when the report was made. has been prepared. Despite this loss, the company intends to continue assessing opportunities that will bring more benefit to its shareholders.
Microstrategy among institutional BTC adherents
The move by MicroStrategy, the first to buy $25 0 million worth of bitcoins and an additional 175 million coins to tie its bitcoins reserves holdings to 17,732 bitcoins, opened up growing interest from Wall Street giants.
The MicroStrategy move was continued by Square Inc, a company owned by Jack Dorsey, which recently announced the acquisition of 4,709 bitcoins for $50 million. The desire to increase confidence in Bitcoin’s potential was also demonstrated by online payments giant P ayPal, which opened up other cryptographic payments and purchases through its BTC platform.
In general, all of Bitcoin’s investment and integration have stirred up the bull’s perspective in the price of the coin recently, profits in the likeness of space, MicroStrategy and other public companies that currently own about $7 billion in Bitcoins.
Recently we reported that MicroStrategy ‘s investment in bitcoins brought in $103 million with a return on investment of 24.3% over the past 79 days.
