Updated 10 Dec, 2021

MicroStrategy Reveals New BTC Purchase, Now Holds 122K Tokens

Vector of a mountain of Bitcoins Stacking with one showing the BTC logo. MicroStrategy Reveals New BTC Purchase, Now Holds 122K Tokens

Key Takeaways:

  • MicroStrategy, a software company, has purchased 1,434 new bitcoins for $82 million
  • The bitcoin-hoarding firm now holds 122,478 tokens, worth about $6 billion

MicroStrategy Buys 1,434 New Bitcoins

Software company MicroStrategy, famous for hoarding bitcoin, announced its latest buying spree has resulted in 1,434 new bitcoins. The company’s chief executive, Michael Saylor, broke the news on Twitter last night.

In more detail, MicroStrategy “has purchased an additional 1,434 bitcoins for $82.4 million in cash at an average price of $57,477 per bitcoin.” Moreover, Mr. Saylor explained his company now holds 122,478 bitcoins. Each bitcoin, on average, has been acquired for slightly under $30,000 for a total investment of $3.66 billion.

In today’s prices, this would place MicroStrategy’s bitcoin stack under a price tag of roughly $6 billion. In other words, the crypto bet by the corporation has so far paid off a hefty return of about $2.3 billion.

It’s important to note that these gains are not realized as MicroStrategy has not sold any of its bitcoin. In fact, according to CEO Michael Saylor, selling the company’s bitcoin is highly unlikely.

The Software Firm Continues to Collect BTC

Multiple times in the past, Mr. Saylor has commented he is looking to shift MicroStrategy’s finances entirely on the blockchain, or in bitcoin. Further, he believes bitcoin could reach a market valuation of $100 trillion. In comparison, today’s US stock market with the most expensive companies in the world is worth about $50 trillion. Presently, bitcoin’s value floats near $1 trillion.

With the recent buy, MicroStrategy’s bitcoin stack represents about 96% of the company’s valuation of $6.1 billion. The fresh bitcoin acquisition is only a fraction of all BTC purchases by the company.

Initially, MicroStrategy began buying bitcoin in August 2020 when it splashed out $250 million to get the original coin. Now, it is the world’s most prominent example of a corporation exposed mainly to bitcoin. Other examples of companies that own bitcoin on their balance sheet include Square and Elon Musk’s Tesla.