One of the proposed schemes is digital asset-based lending.
The largest investor in the most capitalized cryptocurrency bitcoin (BTC) – software company MicroStrategy – is looking for opportunities to make money from its digital asset. Its representatives informed about it during communication with shareholders.
The MicroStrategy team thought about the possibility of using their bitcoins to generate profits against the backdrop of a prolonged decline in the value of the cryptocurrency.
The software manufacturer draws attention to the fact that representatives of the organization have not taken any specific actions aimed at using controlled BTC for profit. At the same time, the developers talk about the possible direction of movement. In particular, the MicroStrategy team mentions the income from providing loans in cryptocurrencies.
“If we form a partnership with a big tech company, big bank, or other significant market participant who really wants to gain access to bitcoin, this could be a good source of income for us,” the organization said.
At the same time, the head of the company, Michael Sailor, drew attention to the fact that the continued decline in the BTC rate will not change the strategy of the software provider. According to him, the organization will continue to buy cryptocurrencies.
As of December 20, 2021, MicroStrategy controls 122K bitcoins, or 0.583% of the total BTC that will ever be mined. Their total value stopped at $ 5.7 billion. For comparison, under the control of the closest neighbor MicroStrategy according to the ranking of the largest bitcoin investors among publicly traded companies – Tesla – there are assets worth $ 2 billion.
The average purchase price of BTC by MicroStrategy, according to its representatives, stop about $29,861. Keep in mind that software vendors started buying bitcoins in August 2020. MicroStrategy soon became the largest BTC investor. As a result, the company’s shares began to repeat the movement in the value of the cryptocurrency. Many market participants are starting to see buying MicroStrategy securities as an alternative to buying bitcoin outright.
Not all members of the crypto community believe that cryptocurrency endorsements by large companies have a positive effect on the digital asset market. Investors share concerns that MicroStrategy might dump bitcoin.
Recall that in September 2021, information appeared on the network that top managers of software suppliers sold part of their stake in the company.