MicroStrategy, the industry technology provider, is now sitting on close to $500 million of cash.
The company disclosed the cash hoard in its earnings release yesterday.
Company officials said the cash will be used when/if MicroStrategy stock [ticker: MSTR] becomes undervalued. MSTR has climbed about 13% in value so far this year. The company’s market cap stands at about $2.3 billion.
However, Michael Saylor, MicroStrategy’s chairman and chief executive officer, also hinted that the company could pursue an acquisition.
We’re prepared to use the capital to growth the business, if we actually see a corporate opportunity that’s fairly priced and that makes sense. We also are prepared to hold it and be conservative custodians of that capital if that’s what is the right thing to do.
Deals are starting to happen in fintech. Earlier this month, PayPal agreed to pay $890 million to acquire Xoom, for example.
MicroStrategy also disclosed yesterday that it scored Nedbank (Pty) Ltd as a client. Nedbank Limited’s parent, Nedbank Group [JSE: NED], based in Johannesburg, South Africa, is one of the largest banking groups in South Africa by assets and deposits. Nedbank Ltd purchased the MicroStrategy Analytics Platform service for enterprise-wide analytics. Terms were not released.