MicroStategy Adds Another 1,045 BTC To Its Holdings• April 6, 2023 11:38 am • Comments
MicroStrategy has recently announced that it has once again acquired another 1,045 Bitcoin which brings its total BTC holdings to over 140,000.
This is in addition to the 6,455 BTC that the company had bought in the past few weeks which indicates that the company remains very bullish on the future of the digital asset.
As of now, the average price of acquisition of the company is around $28k per Bitcoin which means that it has more or less broke even with its investment.
It seems that the firm is betting that a potential banking crisis and continued inflation will drive institutions to allocate more capital to the crypto industry.
Its founder & CEO Michael Saylor had also stepped down as CEO in order to focus on the company’s Bitcoin acquisition strategy.
MicroStrategy has acquired an additional 1,045 #bitcoin for ~ $29.3M at an average price of $28,016 per bitcoin. As of 4/4/2023 @MicroStrategy holds 140,000 bitcoin acquired for ~$4.17 billion at an average price of $29,803 per bitcoin. $MSTR https://t.co/IBufTxalnv
— Michael Saylor⚡️ (@saylor) April 5, 2023
Wednesday’s SEC filing also said that MicroStrategy’s bitcoin pile is worth about $4.17 billion with “an average purchase price of approximately $29,803 per bitcoin, inclusive of fees and expenses.”
MicroStrategy’s shares (MSTR) dipped after the release of the filing, decreasing roughly 3%. Though, other business analytics companies and bitcoin itself were also in the red this morning.
The news of the latest round of crypto purchase also comes after co-founder Michael Saylor stepped down as CEO last year to focus on the company’s bitcoin acquisition strategy.
The company is by far the largest corporate holder of BTC in the world, with more than 0.66% of Bitcoin’s total supply of 21 million bitcoins.
Blockworks reached out to MicroStrategy for comment.
At this point, the company likely has more digital assets than some governments in the world which makes it one of the largest institutional investors.
At the same time, the price of the company itself has been recorded to be highly correlated to the crypto industry due to its immense digital asset holdings.
Company stock is up by around 95% since it bought its first bitcoin and it seems that many are seeing the stock as a way to get indirect exposure to the crypto industry without actually buying crypto.
Saylor continues to claim that BTC is a dependable store of value and is a viable alternative that may be safer than holding cash in some scenarios.
This is especially true as the banking crisis has exposed some of the risks of the traditional banking sector.
MicroStrategy bought 1,045 bitcoin between March 24 and April 4, along with its subsidiaries, for an average price of approximately $28,016, according to a new U.S. Securities and Exchange Commission filing.https://t.co/9lxYrxYLin
— MarketWatch (@MarketWatch) April 5, 2023
The latest buy comes as Bitcoin has a great start to 2023: it is currently trading for $27,958 per coin, according to CoinGecko data. At the start of the year it was priced at $16,615.
But despite soaring in value this year, Bitcoin is still down 60% from the all-time high of $69,044 it touched in November 2021.
MicroStrategy’s founder Michael Saylor decided to buy Bitcoin back in 2020 as a hedge against inflation just as COVID lockdowns began shutting down global economies.
The investment appeared prescient the following year as Bitcoin went on a historic bull run.
Microstrategy $MSTR just announced it bought 1,045 #Bitcoin at an average price of $28.0k.
It now owns about 140k Bitcoin, purchased at an average price of $29.8 pic.twitter.com/GbPCwgGQyf
— Julio Moreno (@jjcmoreno) April 5, 2023
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