- MicroStrategy buys an additional 1,045 Bitcoins for $29.3 million.
- The business intelligence (BI) company now holds 140,000 bitcoin worth over $4 billion, at current rates.
- The publicly traded company is now the largest Bitcoin holder worldwide.
On April 5, MicroStrategy executive chairman Michael Saylor announced in a Tweet that the U.S.-based business intelligence company had acquired an additional 1,045 BTC. Each Bitcoin was bought at an average price of $28,016, making a total of $29.3 million.
The form 8-K that the publicly listed company submitted to the Securities and Exchange Commission of the United States (SEC) on April 4 revealed that the crypto assets were bought between March 24, 2023, and April 4, 2023.
Since the software company continues to invest in Bitcoin as a reserve asset, this announcement represents its critical turning point. On March 27, the publicly listed company bought 6,455 bitcoins for $150 million. In the tweet, Saylor said:
“As of 4/4/2023, @MicroStrategy holds 140,000 bitcoin acquired for ~$4.17 billion at an average price of $29,803 per bitcoin.”
MicroStrategy is just $1,586 from making a profit on its huge Bitcoin investment, with BTC currently selling at $28,217. Any price growth after that point will see the business intelligence company reach profitability.
After the purchase announcement, Microstrategy’s shares increased 0.53% during the trading day, reaching US$298,98 at 8:30 p.m. in Hong Kong. MicroStrategy’s shares have increased by almost 106%. Year-to-date, the value of Bitcoin has increased by 68% within the same time.
The purchase of Bitcoin by MicroStrategy, the world’s most significant corporate Bitcoin holder, may encourage more people to invest in the crypto market.
The company also repaid its $205M Bitcoin-Collateralized loan in full from the collapsed Silvergate Bank at a 22% discount, according to Saylor’s March 27 tweet.
Saylor’s Confidence In Bitcoin
In August last year, Saylor gave up his position as CEO to take the executive chairmanship of the firm and concentrate on its “Bitcoin acquisition strategy and related Bitcoin advocacy projects.” The co-founder of MicroStrategy has been one of the most vocal Bitcoin supporters, continuously asserting his view that Bitcoin is the safest and most reliable store of value. The business’s current Bitcoin strategy is similar to dollar cost averaging (DCA) but with massive sums of money.
During MarketWatch’s Money Festival in September 2022, Saylor said:
“I think that the next logical step for Bitcoin is to replace gold as a non-sovereign store of value asset, and gold is a $10 trillion asset right now. Bitcoin is digital gold. It’s 100x better than gold. You can’t inflate it. The half-life of money in Bitcoin is forever. You can move it on billions of computers at the speed of light. So if bitcoin goes to the value of gold, it’s going to $500,000 a coin, and I think that will happen this decade.”
In August 2020, MicroStrategy made its initial Bitcoin purchase. Since then, the company has steadily increased its holdings. With its most recent acquisition, the publicly listed company now owns more than $4 billion worth of Bitcoin, demonstrating its belief in the long-term potential of the digital currency.
