MicroStrategy CEO: To buy 16,796 bitcoins, we traded non-stop for 74 hours.
MicroStrategy CEO Michael Saylor revealed new details about how his company organized the acquisition process of 16,796 BTC. This week, MicroStrategy announced that it had invested another $175 million in bitcoin, in addition to the $250 million it invested in August.
According to Saylor, they had to trade non-stop for 74 hours and close deals every three seconds. The result was 88,617 bids, each of about 0.19 BTCs.
"That's the equivalent of $39,414 per minute, but we were always willing to buy for $30-50 million if we were lucky enough to catch a 1-2 percent drop," he added. - If we consider bitcoin as a reserve asset, based on our model, 99.98 percent of all transactions would be off-block and the assets at risk would be in cold storage 99.92 percent of the time.
Earlier, Saylor described the prerequisites that prompted MicroStrategy to convert most of its reserves to bitcoin: "To our own horror, we have come to realize that we are sitting on a $500 million ice block and it is melting. This is not speculation or hedging. This is the company's strategy to adopt the bitcoin standard.
Meanwhile, analysts expect other companies to follow the example of MicroStrategy. Willie Wu is betting on Twitter CEO and big supporter of bitcoin, Jack Dorsey. He supposes that Dorsey will decide to place a part of the corporate assets under his management in the crypt currency to avoid their depreciation.
In a conversation with Anthony Pompliano Saylor, co-founder of Morgan Creek Digital, said that currently there are 35,000 public companies with a total free reserves of $5 trillion. Wu estimates that if such companies decide to place 1 percent of their capital in the bitcoin, it will be enough to raise the capitalization of the crypt currency to $2 trillion.
"Dorsey controls $10 billion worth of cash reserves on Twitter and Square. Inflation reduces their value. He only has one word in his profile, and that's the word Bitcoin," Wu adds.