- Business intelligence firm MicroStrategy plans to continue buying more Bitcoin, said CEO Michael Saylor.
- In the last week, the company spent another $1 billion on BTC, bringing its Bitcoin holdings to around $4.5 billion.
“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,” said Microstrategy CEO Michael Saylor.
As Decrypt reported on February 25, the business intelligence firm announced that it purchased 19,452 Bitcoin, worth $1.026 billion, at an average price of $52,765 per BTC. MicroStrategy’s Bitcoin purchase has pumped the worth of its BTC holdings to around $4.5 billion in total.
MicroStrategy’s Bitcoin adventure
MicroStrategy first began exploring Bitcoin as an investment last summer, when the company bought $425 million worth of BTC in August and September. By the end of the year, its Bitcoin investments exceeded $1.125 billion.
“As of December 21, 2020, the Company holds an aggregate of approximately 70,470 bitcoins, which were acquired at an aggregate purchase price of approximately $1.125 billion and an average purchase price of approximately $15,964 per bitcoin, inclusive of fees and expenses,” MicroStrategy reported at the time.
Thanks to its massive Bitcoin purchases, the company has arguably helped pave the way for institutional investments in crypto, with many traditional firms subsequently announcing plans to buy Bitcoin and other cryptocurrencies for their treasuries.
Perhaps the most notable example is electric car giant Tesla, which invested $1.5 billion in Bitcoin two months after MicroStrategy—after Saylor offered to share his Bitcoin playbook with CEO Elon Musk.
Daniel Pinto, co-president and COO of multinational investment bank JP Morgan, has recently confirmed that if Bitcoin and other cryptocurrencies become widespread, the bank will have no choice but to get involved with them.