MicroStrategy, under the leadership of Michael Saylor, continues to demonstrate its bullish stance on Bitcoin with another significant purchase. As Bitcoin’s price surged from around $41,000 to over $50,000 in February, MicroStrategy seized the opportunity to acquire an additional 3,000 Bitcoin (BTC), spending an estimated $155 million at an average price of $51,813 per BTC. With this purchase, the company’s total Bitcoin holdings now amount to 193,000 BTC.
Since its initial foray into Bitcoin in 2020, MicroStrategy has been steadily accumulating the cryptocurrency. Initially purchasing Bitcoin at an average price of $31,544, the company has invested approximately $6 billion in its crypto holdings. However, with Bitcoin’s current market value, these holdings are now worth nearly $10 billion. This remarkable increase in value has positioned MicroStrategy as one of the world’s largest corporate holders of Bitcoin, with over $4 billion in profits from its Bitcoin position alone.
MicroStrategy’s decision to invest in Bitcoin stems from concerns about inflation and the economic impact of the COVID-19 pandemic on global economies. Michael Saylor has been vocal about using Bitcoin as a hedge against the depreciation of the U.S. dollar. To fund its BTC purchases, MicroStrategy has utilized various financial instruments, including cash, debt, and equity.
Overall, MicroStrategy’s continued accumulation of Bitcoin underscores its confidence in the long-term value proposition of the cryptocurrency and its commitment to harnessing digital assets as a strategic asset class for the company’s treasury.
