Bitcoin’s adoption, the start of a Digital Revolution
Recently MicroStrategy Inc. added to its Bitcoin position on December 29, 2021, purchasing an additional $94 million of the digital asset to add to its balance sheet. The Company now holds a total of 125,051 Bitcoin totalling $4.81 billion US dollars. MicroStrategy Incorporated is an American company that provides business intelligence, mobile software, and cloud-based services. Bank of America uses its products to increase its efficiency when it comes to cloud and software solutions. The company continues to grow and increase its client base every day with big names such as Adidas Group and Commonwealth Bank of Australia.
The CEO of MicroStrategy, Michael Saylor has believed in Bitcoin for quite some time now with his first purchase dating back to August 2020 showing this is not a new trend. Saylor boldly predicted that in the coming years, the prices of Bitcoin could go up to $6 million dollars.
As of February 2022, Micro strategy acquired 125,051 Bitcoins, which is totalled around $4.81 billion US dollars. Saylor's powerful belief in Bitcoin's increasing value over the years has prompted him to buy a lot more of the digital currency since August 2020. He is known for his bullish sentiment and large buy orders in the cryptocurrency space resulting in a domino effect among institutions affecting Tesla, Square Inc and others.
Billionaire Elon Musk, despite his previous criticism of the environmental impact of Bitcoin mining, has confirmed that Tesla has a total of 42,902 Bitcoins, which is worth $2.8 billion US dollars. It is no surprise that Tesla would hold tight to its Bitcoin holdings since they are earning more from buying and selling digital currency than producing and selling vehicles.
Tesla reached a quarterly record with a net income of $438 million, but it's not from selling cars. It is from selling about $1.5 billion worth of their Bitcoin holdings, which contributed to their $101 million profit margin. CFO Zach Kirkhorn praised Elon’s purchase as “a good place to place some of our cash that's not being used and get a good return on that”.
Square announced it had purchased an additional $170 million of bitcoin last February back in 2021. Since Jack Dorsey’s last purchase of 3,318 BTC, we are waiting to hear from him again announcing another major purchase. The large tech company now own a total of 8,027 coins which is estimated to be around $350 million US dollars. A lot of these big corporations are looking at bitcoin as a long-term digital asset to hedge against inflation and consider it to be a liquid alternative to cash.
As the world starts to realise the value of the ‘’digital gold’’ we are seeing a rise in adoption by global companies such as the ones mentioned above but also countries like El Salvador and most recently Lugano in Switzerland who adopted Bitcoin as legal tender to promote decentralization, ensure monetary stability and fight inflation.
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Tech Visionary & Entrepreneur, Founder & CEO @ Nezo Global