MicroStrategy Announces New $15 Million Bitcoin Purchase
- MicroStrategy makes a new Bitcoin acquisition
- The company is relentlessly changing dollars to Bitcoin
MicroStrategy Increase their BTC Bet
MicroStrategy continues to plough its cash reserves into Bitcoin. A new acquisition of the number one crypto asset was made on March 12, according to Michael Saylor, CEO of the company. “MicroStrategy has purchased an additional ~262 Bitcoins for ~$15.0 million in cash at an average price of ~$57,146 per Bitcoin” Mr. Saylor tweeted. The company now owns roughly 91,326 Bitcoins, acquired for about $2.21bn at an average price of $24,214 per single Bitcoin.
Over the last 9 months, the software company has been openly accumulating Bitcoin. Its CEO has been a vocal proponent of the transactional properties of Bitcoin, while he has relentlessly been pushing the narrative that Bitcoin is better in terms of a store of value or means of exchange compared to fiat money and gold. “If institutions want to move billion-dollar blocks of money around the globe, gold is a million times more expensive than Bitcoin,” Mr. Saylor said. “And a thousand times slower. We can’t build a modern economy on antiquated technology,” he concluded.
To fund his crypto frenzy over recent months, the MicroStrategy executive has been feverishly selling cash and convertible notes to the extent that over 72% of the company’s $7.5bn market value is allocated to Bitcoin. MicroStrategy holds the number one place as a publicly-traded company that owns the largest amount of Bitcoin, currently over 91,000 Bitcoins worth around $5.5bn.
Even though the company held over 90,000 Bitcoins, MicroStrategy has made several $10 to $15 million purchases, betting that the price will keep going up. Since the start of March, the firm has made three separate Bitcoin purchases. On March 1, it acquired 328 Bitcoins worth $15 million, followed by another bet on 205 Bitcoins for $10 million on March 5, and the most recent purchase from March 12, 262 Bitcoins for $15 million.
MicroStrategy’s crypto accumulation rounds have sparked interest from other institutional investors who have hopped onto the crypto wagon. More and more corporate participation has been driving prices further to the upside, setting the current run apart from 2017’s retail-fueled rally.