The CEO of business intelligence company MicroStrategy has explained why he has made such a noticeable u-turn on Bitcoin, with him recently hailing it as a store of value.
In a series of tweets Michael Saylor revealed how MicroStrategy had acquired 21,454 Bitcoin ($235 million) before securing it in cold storage.
“If Bitcoin is treated as a treasury reserve asset, based on our model, 99.98% of all transactions will be off-chain, and assets-at-risk will be in cold storage 99.92% of the time.” He wrote.
The 55-year-old entrepreneur was also a recent guest on Anthony Pompliano’s weekly podcast, where he heaped praise on the world’s largest cryptocurrency.
We acquired 21,454 BTC via 78,388 off-chain transactions, then secured it in cold storage with 18 on-chain transactions. #Bitcoin scales just fine as a store of value.
— Michael Saylor (@michael_saylor) September 17, 2020
Barry Silbert, founder of CEO of Digital Currency Group, which is a parent company of Grayscale and Genesis Trading, responded to Saylor’s venture into Bitcoin by saying “game on” in terms of a race to accumulate the most Bitcoin.
With major global companies now taking cryptocurrencies by the horns, it reiterates that institutional interest is driving price action as opposed to retail hype.
As reported by Coin Rivet, Google search trends for “Bitcoin” and “Buy Bitcoin” remain substantially lower than in 2017 when it rose to $20,000.
However, with Bitcoin comfortably trading above $10,000 it demonstrates how much of an impact new entrants to the market like MicroStrategy are having.
For more news, guides and cryptocurrency analysis, click here.