Cryptocurrency News

MicroStrategy Spends Additional $50 Million to Buy More Bitcoin

By December 8, 2020 No Comments

Key highlights:

  • MicroStrategy repurchased $50 million of Bitcoin
  • MicroStrategy believes in BTC’s future, and it is bullish about the oldest cryptocurrency in the world
  • Bitcoin has approved itself as a reputable store of value, and it attracted the attention of big institutions

MicroStrategy buys an additional $50 million worth of Bitcoin

Publicly-traded business intelligence company MicroStrategy recently revealed that it had made a further investment in Bitcoin. The firm’s CEO Michael Saylor announced the company’s latest investment in a tweet, revealing that MicroStrategy has purchased an additional 2,574 Bitcoins. The purchased Bitcoins are worth around $50 million, and MicroStrategy paid $19,427 per BTC on average. 

According to Saylor’s tweet, they now hold approximately 40,824 Bitcoins. Given the company’s previous statements, it isn’t too big of a surprise that they are continuing with further Bitcoin investments. MicroStrategy believes in Bitcoin as a store of value and sees it as a fantastic investment opportunity. 

Quick calculations show that MicroStrategy’s cost per Bitcoin based on past purchases is approximately $11,635. And also, estimates indicate that the value of MicroStrategy’s Bitcoin holdings at the the moment is around $766.6 million. In October, Square, a US-based financial services company, invested $50 million in bitcoin. In the third-quarter earnings report, experts depicted that cryptocurrencies are an instrument of economic empowerment and align with the organization’s purpose. That the entire investment has nearly tripled to $144 million. Moving from $50 million to $144 million is a huge move. You can try a free and best online million to lakh converter to help you convert different number systems for ease of calculations.

MicroStrategy is not just considering buying Bitcoin. It also has other plans regarding the Bitcoin industry, including BTC data services and products. All in all, the firm has confidence in Bitcoin, and it is bullish about the future of BTC. 

It is not the first time that MicroStrategy bought Bitcoin

MicroStrategy considers BTC as a credible store of value. It seems that the rationale behind the firm’s investment in BTC reflects Paul Tudor Jones views surrounding BTC and crypto. The company bought around 21,454 Bitcoins in August, and the value of the coins was about $250 million at that time. 

MicroStrategy also spent $175 million in September to buy more Bitcoin, buying 16,796 BTC at that time. All of these purchases indicate a bullish sentiment towards BTC. The move wasn’t a big surprise at the time because MicroStrategy has told the SEC about its plans to buy additional BTC. 

With the economic crisis and accelerated money printing, some companies are considering Bitcoin as a hedge against the devaluation of fiat currencies. Bitcoin is now being considered more commonly as a store of value, but it still has to prove that it has long-term staying power.

Notably, the Coinbase cryptocurrency exchange recently revealed that it helped MicroStrategy actually acquire their large BTC holdings, without impacting the market during the purchase itself. Coinbase helped MicroStrategy split their purchase into thousands of different orders, helping them disguise the fact that a large single buyer was making a massive BTC purchase. This was done to prevent any large price swings and secure a better average price for MicroStrategy.