Software companies are increasingly interested in bitcoin, Microsoft may invest
Despite the volatility in the crypto market, investors are increasingly interested in it. Software companies have also started betting in this segment. After MicroStrategy, Microsoft, one of the big software companies, can also invest in bitcoin. The company has sought feedback from its shareholders for this.
Microsoft has given information about this in a filing to the US Securities and Exchange Commission (SEC). Earlier, the company had explored business possibilities in crypto and Web3 but it has not added bitcoin or any other cryptocurrency to its balance sheet. About two years ago, the company listed the position of ‘Director of Business Development – Cryptocurrencies’. This indicated that it wanted to expand in blockchain technology. Microsoft has also invested in blockchain firm ConsenSys.
Earlier, American electric vehicle (EV) maker Tesla and software company MicroStrategy had invested in bitcoin. Recently MicroStrategy has bought about $1.1 billion in bitcoin. This company had bought about 18,300 bitcoins. MicroStrategy had said that these bitcoins were bought between August 6 and September 12. This is the company’s highest purchase of bitcoin in the last three years. Earlier, MicroStrategy had bought 19,452 bitcoins in February 2021. It now has about 2,44,800 bitcoins. Their value is about $ 14 billion. This is about one percent of the total available number of bitcoins. BlackRock’s iShares Bitcoin Trust is the largest bitcoin fund with assets worth about $ 20 billion.
MicroStrategy’s corporate strategy includes buying cryptocurrencies. It started buying bitcoin about four years ago. The company’s chairman, Michael Saylor, cited the reason for this as a hedge against inflation. For this reason, supporters of bitcoin also praised MicroStrategy. The company’s share price has increased significantly this year. Late last year, MicroStrategy and its subsidiaries purchased approximately 14,620 bitcoins at an average price of approximately $42,110. The company took this step to preserve the value of its reserve assets.
