MicroStrategy Expands Bitcoin Holdings With 21,550 BTC Purchase For $2.1 Billion

Bitcoinist
Updated
Mitrade
coverImg
Source: Shutterstock

MicroStrategy, a US-based business intelligence firm, has expanded its Bitcoin (BTC) holdings as part of its corporate treasury strategy. The company announced its latest purchase of 21,550 BTC, worth approximately $2.1 billion.

MicroStrategy Unfazed by Bitcoin’s Historic Price Surge

In an official announcement today, the publicly-traded company had acquired an additional 21,550 BTC. This purchase comes as Bitcoin crossed the $100,000 mark for the first time in its history, pushing the total cryptocurrency market cap to unprecedented levels.

According to a filing with the US Securities and Exchange Commission (SEC), the acquisition was funded through proceeds from issuing and selling company shares, totaling $2.13 billion. The purchase was executed between December 2 and December 8 at an average price of $98,783 per BTC, including fees and expenses.

Michael Saylor, CEO at MicroStrategy, in an X post stated that the company now holds a total of 423,650 BTC for a total acquisition cost of $25.6 billion, at an average price of $60,324 per BTC. 

While many investors may have second-thoughts about buying BTC amid its historic run, Saylor seems unfazed by the digital asset’s ascent. Earlier this year, Saylor said in an interview that he would be “buying the top forever.” He stated:

I’m confident I’ll be buying Bitcoin at $1 million per coin — likely around $1 billion worth of Bitcoin per day at that price.

Notably, with 423,650 BTC on its balance sheet, MicroStrategy now controls just over 2% of Bitcoin’s total capped supply of 21 million coins. Most recently, Saylor urged the US government to replace gold with BTC. The Bitcoin permabull said:

Dump your gold. Sell all the US gold and buy Bitcoin. You will demonetize the entire gold asset class. And our enemies hold gold in their banks, so their assets would go to zero. Our assets would go to $100 trillion.

Fifth-Consecutive Week Of BTC Purchase

MicroStrategy’s latest acquisition marks its fifth consecutive Bitcoin purchase in as many weeks. During this period, BTC’s price has climbed by 40%, while MicroStrategy’s stock (MSTR) has risen by approximately 20%.

Year-to-date, MicroStrategy’s stock has soared by 520%, climbing from $69 on January 1 to $388 at the time of writing. This performance has outpaced Bitcoin and the S&P 500, solidifying the company’s position as a leading corporate BTC holder.

MSTR

MicroStrategy’s highly profitable BTC strategy has also inspired companies worldwide, including Japan-based early-stage investment firm Metaplanet. Further, Saylor has also tried to convince tech juggernaut Microsoft to consider adding BTC to its balance sheet.

That said, long-time gold bug Peter Schiff is not yet sold on BTC, saying that MicroStrategy’s Bitcoin bet will likely backfire. BTC trades at $100,192 at press time, down 0.1% in the past 24 hours.

bitcoin

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Bitcoin Whales Just Realized $2.6B In Profit, Is the Market About to Crack or Soar?Bitcoin remains within a relatively tight range, struggling to gain sufficient momentum to break the $110,000 mark. At the time of writing, the leading crypto by market cap trades at $106,437, down
Author  NewsBTC
38 mins ago
Bitcoin remains within a relatively tight range, struggling to gain sufficient momentum to break the $110,000 mark. At the time of writing, the leading crypto by market cap trades at $106,437, down
placeholder
Bitcoin Price Forecast: BTC slips below $107,000 even as exchange reserves hit 6-year low Bitcoin (BTC) slips below $107,000 at the time of writing on Tuesday, continuing a mild pullback from the previous day.
Author  FXStreet
16 hours ago
Bitcoin (BTC) slips below $107,000 at the time of writing on Tuesday, continuing a mild pullback from the previous day.
placeholder
Bitcoin July Preview: History Says Don’t Trust The QuietMarket tactician shas put a statistical spotlight on Bitcoin’s habit of dozing through June before rewarding – and sometimes punishing – traders in the following quarter.
Author  NewsBTC
22 hours ago
Market tactician shas put a statistical spotlight on Bitcoin’s habit of dozing through June before rewarding – and sometimes punishing – traders in the following quarter.
placeholder
Bitcoin Price Holds Steady — Bullish Monthly Structure Suggests Rally ContinuationBTC is now consolidating and might aim for a move above the $108,000 resistance.
Author  NewsBTC
23 hours ago
BTC is now consolidating and might aim for a move above the $108,000 resistance.
placeholder
Institutional investors pour into Bitcoin ETFs despite flat pricesBitcoin is standing still while the rest of the market is running laps.
Author  Cryptopolitan
Yesterday 01: 49
Bitcoin is standing still while the rest of the market is running laps.