Willy Woo, a cryptocurrency trader and entrepreneur, has explained why Michael Saylor’s MicroStrategy continues to confidently buy large amounts of Bitcoin, often on the dip.
Earlier today, the company purchased $5,050 Bitcoins for $243 million. MicroStrategy added another $177 million in Bitcoin in August.
Overall, the company spent $419 million on Bitcoin in the third quarter of this year.
“MicroStrategy holds BTC for a number of companies.”
Willy Woo has shared an updated chart of Bitcoin held by public companies following MicroStrategy’s aforementioned Bitcoin purchase.
Following this acquisition, the company now owns approximately 114,042 Bitcoins worth a mind-boggling $3.16 billion.
Woo has shared his perspective on why MicroStrategy is storing all of this BTC: other publicly traded companies find it easier to purchase a convertible debt tool from Saylor’s company and thus gain exposure to the major crypto asset rather than going to the trouble of holding BTC themselves. Earlier this year and again in December 2020, the entity raised massive sums of money to purchase BTC: $650 million in December and $400 million in June.
Woo believes MicroStrategy holds Bitcoin for many public companies.
Are other businesses investing in Bitcoin as well?
According to a chart shared on Twitter by Woo, the total amount of Bitcoin held by public companies is slightly less than 200,000 coins. Galaxy Digital, Square, and Tesla are shown separately, at the very bottom of the chart, below MicroStrategy.
Woo, on the other hand, stated that he saw several large Bitcoin purchases in on-chain data last month. He believes those were undisclosed corporate purchases and anticipates that they will be disclosed in the end-of-quarter regulatory filings.
I’m looking forward to seeing the end-of-quarter filings. There were a couple of significant buys in the billion dollar range seen on-chain in the last month, leading some to speculate that they were undisclosed corporate purchases.
Wall Street legend Leon Cooperman warns investors against investing in Bitcoin.
Billionaire and investor Leon Cooperman recently advised corporate and retail cryptocurrency investors to exercise extreme caution when purchasing crypto assets. He went on to say that he doesn’t think Bitcoin, in particular, “makes a lot of sense.”
Cooperman believes that for those who are “nervous about the world,” gold is a far better store of value than Bitcoin.