Microstrategy Seems To Be On A Mission As It Acquires 5,050 BTC Worth $242 Million

MicroStrategy, a business intelligence, mobile software, and cloud-based services providing company, has announced the acquisition of 5,050 Bitcoin worth $242 million.

The company’s Chief Executive Officer, Michael Saylor, revealed that MicroStrategy now possesses more than $5 billion worth of bitcoin, making it by far the biggest corporate investor in cryptocurrency, Tesla being the second-largest holder, having bought $1.5 billion worth of bitcoin earlier this year.

The purchase announcement comes after President Nayib Bukele of El Salvador announced that he was undaunted by the market crash of Bitcoin as his country “bought the dip”. The Central American country officially made Bitcoin a legal tender on the 7th of September. This means that Bitcoin will now be accepted as a satisfactory payment for any monetary debt. Citizens can now use Bitcoin to pay for goods and services in the country, and according to reports, multinationals such as McDonalds, Starbucks, and PizzaHut now accept Bitcoin as a means of payment in El Salvador.

MicroStrategy’s Form8-K filing reveals that MicroStrategy bought 5,050 BTC at an average price of $48,099 per coin. At the beginning of June, the firm announced that it planned to invest the sum of $400 million in Bitcoin.  About two weeks later, the firm announced that it had acquired about 13,005 Bitcoins in addition to its previous holding. The company revealed that it acquired these Bitcoins for an approximated $490 million in cash at an average price of $37,617 for each Bitcoin and this price is inclusive of expenses and fees that it incurred.

In the third quarter, the company has now purchased a total of 8,957 bitcoins for approximately $419.9 million in cash, at an average price of approximately $46,875 per Bitcoin, inclusive of fees and expenses. In total, the company now holds 114,042 Bitcoins that were acquired at an aggregate purchase price of approximately $3.16 billion and an average purchase price of approximately $27,713 per Bitcoin, inclusive of fees and expenses. Going by today’s price of Bitcoin which currently stands at $44,650, of MicroStrategy’s total holdings, the company has gained approximately 61 percent, as its current holdings now stand at $5.1billion. Chief Executive Officer, Michael Saylor had previously outlined his dual strategy of developing MicroStrategy’s software business while simultaneously “acquiring and holding bitcoin” with excess cash.

The latest acquisition of Bitcoin by MicroStrategy goes to show that there is a strong institutional demand for the flagship cryptocurrency.