MicroStrategy, a US-based business intelligence company, has expanded its Bitcoin (BTC) holdings as part of its corporate treasury strategy. The company announced its latest purchase of 21,550 BTC, worth approximately $2.1 billion.
MicroStrategy unfazed by historic Bitcoin price surge
In an official announcement today, the publicly traded company had acquired an additional 21,550 BTC. This purchase comes as Bitcoin crossed the $100,000 mark for the first time in its history, raising the total cryptocurrency market capitalization to unprecedented levels.
According to a presentation With the US Securities and Exchange Commission (SEC), the acquisition was financed with proceeds from the issuance and sale of the company’s stock, totaling $2.13 billion. The purchase was executed between December 2 and 8 at an average price of $98,783 per BTC, including fees and expenses.
MicroStrategy CEO Michael Saylor in an X mail stated that the company now holds a total of 423,650 BTC for a total acquisition cost of $25.6 billion, at an average price of $60,324 per BTC.
While many investors may be hesitant about purchasing BTC amid its historic run, Saylor seems unfazed by the rise of the digital asset. Earlier this year, Saylor saying in an interview that he would “buy the top forever.” He stated:
I’m sure I’ll buy Bitcoin at $1 million per coin, probably around $1 billion worth of Bitcoin per day at that price.
Notably, with 423,650 BTC on its balance sheet, MicroStrategy now controls just over 2% of Bitcoin’s total limited supply of 21 million coins. More recently, Saylor urged The US government will replace gold with BTC. Bitcoin permabull said:
Throw away your gold. Sell all US gold and buy Bitcoin. It will demonetize the entire gold asset class. And our enemies have gold in their banks, so their assets would reach zero. Our assets would amount to 100 billion dollars.
Fifth consecutive week of BTC buying
MicroStrategy’s Latest Acquisition Marks Its Fifth Consecutive Bitcoin buys in as many weeks. During this period, the price of BTC is up 40%, while MicroStrategy (MSTR) stock is up about 20%.
So far this year, MicroStrategy shares have soared 520%, going from $69 on January 1 to $388 at the time of writing. This performance has surpassed Bitcoin and the S&P 500, solidifying the company’s position as the largest corporate holder of BTC.
MicroStrategy’s highly profitable BTC strategy has also inspired companies around the world, including Japan-based early-stage investment firm Metaplanet. Additionally, Saylor has also tried to convince tech giant Microsoft to consider adding BTC to its balance sheet.
That said, Peter Schiff, the old gold fan, is still not selling in BTC. saying that MicroStrategy’s bet on Bitcoin will likely backfire. BTC is trading at $100,192 at press time, down 0.1% in the last 24 hours.
Featured image from Unsplash.com, graphics from Yahoo! Finance and TradingView.com
