MicroStrategy Continues to Add Bitcoin to its Reserves
After buying over $425 million worth Bitcoiin, business analytics firm MicroStrategy has purchased Bitcoin worth over $50 million as portion of company’s capital expenditure plan. Michael Saylor, CEO of business intelligence firm, revealed the company’s recent Bitcoin purchase through a tweet:
“MicroStrategy has purchased approximately 2,574 Bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $19,427 per Bitcoin. We now hold approximately 40,824 Bitcoins.”
The company initially bought 21,454 Bitcoin for an average purchase price of roughly $250 million in August, approximately a month after declaring in a video call that it intends to add Bitcoin to its asset portfolio.
While speaking to tcnTV in October, Saylor stated that prevailing macroeconomic environment has turned Bitcoin into one of the immensely valuable assets in the world. He also equated Bitcoin to the stock of some of the tech behemoths in their initial days.
MicroStrategy has purchased approximately 2,574 bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $19,427 per bitcoin. We now hold approximately 40,824 bitcoins.https://t.co/nwZcM9zAXZ
— Michael Saylor (@michael_saylor) December 4, 2020
“Bitcoin is a dematerialized monetary network and it’s still early on in its life cycle… The best time to invest in anything is when it’s big enough to be sure it’s going to work and that means more than $100 billion dollars (market cap) and dominant in its industry and when it’s small enough that everybody else doesn’t understand it and the majority of the people aren’t quite sure what [Bitcoin] is.”
Interestingly, shares of MicroStrategy has more than doubled since it chose to add Bitcoin to its treasury portfolio as Bitcoin continues to consolidate above $19,000 and inch towards the psychological barrier of $20,000, spurring mass adoption.