The recent plummeting value of bitcoin hasn’t changed the approach MicroStrategy is taking toward its holdings, according to media reports on Thursday (May 19).
While there has been a sell-off frenzy amid recent volatile bitcoin prices, the software firm is not planning to unload any of its bitcoin holdings, MicroStrategy’s new Chief Financial Officer Andrew Kang told Bloomberg.
Kang was hired earlier this month. The company said last month that it would offer employees the option to invest their 401(k) funds in bitcoin. Kang was previously CFO of home improvement lender GreenSky, PYMNTS reported.
MicroStrategy joins Block and Tesla among the few businesses with substantial bitcoin holdings. MicroStrategy has purchased 129,000 bitcoins with no plans to sell any, Kang said.
“There’s no price target,” MicroStrategy CEO Michael Saylor told Yahoo Finance Live. “I expect we’ll be buying bitcoin at the local top forever. And I expect bitcoin is going to go into the millions. So we’re very patient. We think it’s the future of money.
“Once people figure out why bitcoin is superior to everything else, then the institutions are going to come in with large sums of money, and we’re not going to have to struggle through this massive explanation of why we’re different than 19,000 other crypto tokens,” Saylor said.
Because most cryptocurrencies aren’t registered securities, that puts up a wall that can scare away potential investors and hold back the overall asset class, Saylor added.
Almost 8 in 10 crypto consumers have used bitcoin to shop online or in-store, PYMNTS reported, and 41.2 million people now own at least one type of cryptocurrency. PYMNTS research finds while roughly half of the consumers who own cryptocurrency use it as an investment, nearly one-third of consumers who hold or have held cryptocurrency in the last 12 months say they would switch merchants if it meant they could pay with cryptocurrency.