Just recently, MicroStrategy was rumored to have bought Bitcoin, as lots of BTC were being moved from Coinbase to an unknown wallet. The company was suspected of making the transactions because it recently raised capital to buy more Bitcoin, and Coinbase has been its go-to exchange for purchases. The report has been confirmed, following an announcement on Wednesday that MicroStrategy purchased over $1 billion worth of Bitcoin.
For the record, this is the single largest purchase it has ever made. Of course, the company remains the largest corporate Bitcoin investor, followed by Elon Musk’s Tesla.
MicroStrategy now Holds Over 90,000 BTC
As reported, MicroStrategy purchase about 19,452 BTC at an average price of US$52,765 per coin. In total, the aggregate cost of the cryptocurrencies was US$1.026 billion, which also covers the expenses and transaction fees. Such a massive purchase shows the level of confidence Michael Saylor, the CEO of MicroStrategy, and the rest of the executives, have in the cryptocurrency as a store of value.
Overall, the company currently holds 90,531 BTC in its balance sheet, all of which were purchased at the aggregate cost of US$2.171 billion. This means that each coin was purchased at the average price of US$23,985. As it stands, the company is obviously not going to sell these cryptocurrencies any time soon. In fact, MicroStrategy plans to hold more Bitcoin as part of its corporate strategy.
Corporate Investors are Taking Over
“The company now holds over 90,000 bitcoins, reaffirming our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, can serve as a dependable store of value,” Saylor noted in the report. “We will continue to pursue our strategy of acquiring bitcoin with excess cash, and we may, from time to time, subject to market conditions, issue debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase additional bitcoin.”
Early Wednesday, Jack Dorsey’s Square Inc. also announced they bought an additional US$170 million worth of Bitcoin. We can only expect more Bitcoin purchases from companies at this point.
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