As the largest bitcoin holder globally, MicroStrategy has now put forward its ambitious proposal of becoming the “world’s first bitcoin development company.” This would include crafting BTC blockchain network applications and software. “We see ourselves as a firm that develops Bitcoin.” Chairman and Founder Michael Saylor clarified on the firm’s most recent Q4 earnings call, “By that, we mean we are going to do everything we can to grow the network that involves acquiring more BTC, doing everything we can to benefit our shareholders.”
Being an operating firm, he continued, “gives us an edge over trust companies like Spot BTC ETP.” This includes active control over the capital structure with little or no management costs. With regards to future endeavors, Saylor has grand plans that range from employing AI in conjunction with conventional business services to developing applications that add value and utilize L-2, or base layer, protocols, such as the Lightning protocol. “This adds value to the BTC network as well as generates cash flows so that we can acquire more BTC in the future,” he added.
A prominent consultant for VanEck and Tether, Gabor Gurbacs, lauded the initiative, calling it a smart move to transform Microstrategy into a Bitcoin development company. This will provide cash flow, help set the company apart from other BTC ETFs, and enable Microstrategy to engage in more active research, development, and acquisition of BTC-focused businesses and products, he wrote.
Microstrategy’s Bitcoin Stash Worth $1.37B
In January, Microstrategy increased its Bitcoin holdings by obtaining an additional 850 BTC for a remarkable $37.2 million investment. With this, the company’s total BTC holdings rise to 190,000 BTC. The company also published its financial results for the fourth quarter of 2023. Since the end of Q3 2023, the business intelligence firm has bought 31.755 BTCs, which are now worth roughly a whopping $1.37 billion.
The company also integrated the Bitcoin Lightning Network [LN] into its CEO’s email address. Built on top of Bitcoin, the LN is BTC’s layer 2 scaling solution designed to make payments cheaper and faster.