One of the biggest events in the history of the crypto world was the purchase of millions of dollars in Bitcoin by MicroStrategy. A traditional company dedicated to providing business intelligence software, which decided to invest its cash in BTC. And since then things have gone well for the company. Well, as its CEO Michael Saylor highlights in the Tweet of the day, MicroStrategy ushered in the Bitcoin rally by choosing cryptocurrency over gold:
MicroStrategy grows thanks to Bitcoin
There is probably no more envied company in the world than MicroStrategy. And the thing is, the company led by Michael Saylor is generating disproportionate profits, after having made the financial decision to invest almost all of its cash balance in Bitcoin in August 2020. Just before the cryptocurrency began its last major bull rally.
At the time, this decision was extremely controversial among traditional finance circles. For which Bitcoin is not a financial asset with sufficient stability for a traditional company to bet on it. Especially when there are safer assets like gold and stocks.
However, almost 6 months after investing in Bitcoin, MicroStrategy has demonstrated the benefits that can be gained from early entry into the world of crypto assets. Possessing more than 71,000 Bitcoins, which is equivalent to more than 3 billion dollars. And leading to larger companies like Tesla deciding to invest in BTC as well. Which makes Saylor remember the time of the MicroStrategy purchase, comparing it to the development of the gold price.
«Gold reached its peak in August 2020 at the same time that MicroStrategy chose Bitcoin as a superior asset«.
Thus, Saylor notes as the fact that MicroStrategy decided to ignore the common wisdom in financial markets. It allowed them to avoid an asset that in recent months has performed much worse than Bitcoin, and therefore would have generated less profit for the company.