The Microstrategy Bitcoin Deal Is Much Bigger Than You Think
Behind the numbers lies an even bigger story
We had barely stopped talking about the fact that a Nasdaq-listed company had just spent quarter of a billion dollars converting its “spare” cash to bitcoin last month (I covered it myself in this article), when Microstrategy’s CEO, Michael Saylor, casually slips into conversation that he’s done it again.
This time, his company has purchased another $175 million worth of bitcoin, bringing the total on the balance sheet to 38,250. It was just a month ago that the first investment was made and, at first, I couldn’t help thinking that he is attempting the world’s largest Dollar Cost Averaging purchase.
As before, Saylor’s words were eloquent and beautifully written, perfectly encapsulating his thinking in a handcrafted metaphor:
“We just had the awful realization that we were sitting on top of a $500 million ice cube that’s melting”
However, he went even further this time. Whereas most people, myself included, had assumed this was a hedge against almost certain inflation and a desire to protect those funds, he was actually thinking much bigger:
“This is not a speculation, nor is it a hedge. This was a deliberate corporate strategy to adopt a…
