Is Microstrategy still a software company or already a listed hedge fund? The company started buying Bitcoin last August and appears to have discovered it as a new business area. Two times in a row, Microstrategy recently successfully issued convertible bonds explicitly for further Bitcoin purchases, for a total of around 1.7 billion dollars. Square, the payment service provider founded by Twitter CEO Jack Dorsey, also got in with a three-digit million amount in Bitcoin. And Elon Musk, who with Tesla surprisingly invested 1.5 billion dollars in Bitcoin this January, did not really look into the crypto cards.
Yellen warning pushes Bitcoin price
The largest – and earliest – crypto investor among the three companies mentioned is Microstrategy. After the start announcement with 21,500 Bitcoin in August 2020, it was announced at the beginning of February that it now owned a good 71,000 units of the cryptocurrency, bought for an average of 16,109 dollars. Shortly afterwards, when Tesla reported its first Bitcoin purchases for a total of 1.5 billion dollars and declared more possible, the price shot up by more than 10 percent within minutes.
Since then, Bitcoin has reached a new all-time record of over $ 57,000, and fell below the $ 50,000 mark again at the beginning of the week after the US Treasury Secretary Janet Yellen (as expected) made critical comments. From Tuesday, the round mark came back within reach, because Square reported that it had invested another $ 170 million in Bitcoin after the first $ 50 million in October 2020; Users of his cash app can trade in the cryptocurrency. And on Wednesday, Microstrategy announced that the roughly $ 1 billion revenue from its second convertible bond is now also in Bitcoin.
The latest Microstrategy purchases cost $ 52,765 per Bitcoin, according to a report by CNBC, more than Wednesday’s price. Overall, however, thanks to the early entry, the company is still well in the black – its 90,531 Bitcoin were acquired for an average of $ 23,985, i.e. for less than half of the current price. Their last value was around $ 4.5 billion. The whole of Microstrategy is only valued at a good 7.5 billion dollars on the stock exchange.
Will Tesla boss bring Dogecoin to the moon?
With the purchases this January, when Bitcoin was mostly still available for prices around 35,000 dollars, Tesla has also made a profit so far. Unlike Microstrategy CEO Michael Saylor, Tesla boss Musk is only half impressed. Bitcoin is almost as big nonsense as state fiat currencies, he recently explained, even if the “almost” in this sentence is important.
A little later, Musk continued to entertain or inform on Twitter by choosing a fork on a path as a new profile picture, i.e. a fork in the road. In the meantime, the description of this became “metafork”, a play on words made up of metaphor and fork – and fork is an important term in the crypto sector that describes the division of a currency into two parts. Basically anyone can initiate a fork, including Bitcoin, and it was speculated that Musk could plan something like this.
The Tesla boss did not mention Bitcoin recently, but instead increasingly used the parody currency Dogecoin, on Wednesday even in his profile text, which is currently frequently changing. On the same day he also showed a photo of the moon and on it a Dogecoin dog in an astronaut suit and with a Dogecoin flag. “Literally,” he wrote about it, so Musk may have plans to have such a flag set up on an upcoming SpaceX mission to the moon. Musk recently confirmed that there will be a Mars coin one day. But what else he is planning in the crypto area could not be deciphered at first.