The chief executive of enterprise software company MicroStrategy, which has more than 105,000 bitcoins in its reserves, told CNBC on Friday that borrowing money now to buy more bitcoins is like investing in one of today’s dominant tech corporations.
“If you borrow billions of dollars at an interest rate of 1% and invest them in the next Big Tech virtual network you can think of, the major Amazon, Google or Facebook, why wouldn’t you?”Michael Saylor of MicroStrategy said, according to CNBC, “I mean, if I could borrow $1 billion and buy Facebook ten years ago at 1% interest, I think I would have done very well. “
Saylor said his company has a debt of $2,200 million and will pay about 1. 5% interest on that debt. Since last August, his company has financed his purchases of large amounts of bitcoins, the flow of money from the company, the issuance of inventory, the convertible debt, the senior secured debt. and a billion-dollar record.
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“Our view is that being a leveraged company with a lot of bitcoin is something for our shareholders,” he said.
Saylor also said the notoriety his bitcoin purchases have given the corporation has multiplied its logo by 100.
MicroStrategy on Thursday released its second-quarter earnings report, in which it said it planned to continue accumulating bitcoins on its balance sheet. For the quarter, the company recorded a depreciation of $424. 8 million in its bitcoin holdings, as required by accounting regulations. that is, when the value of an asset falls below its base cost. But the appreciation of an asset is only reported once a gain is known through a sale.
At the end of June, MicroStrategy’s bitcoin assets were worth $3. 65 billion, reflecting bitcoins’ market value of $34. 763 at the time. bitcoin.
Related: Bitcoin News Roundup for July 30, 2021
UPDATE (July 30, 19:33 UTC): updated to load the main points on depreciation fees in the sixth paragraph.
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