MicroStrategy, the business intelligence firm and major Bitcoin investor, has made another significant purchase of cryptocurrency, signaling its bullish stance on the market. Michael Saylor, co-founder and executive chairman of MicroStrategy, took to social media platform X (formerly Twitter) to announce the acquisition of 5,445 BTC by the firm. The coins were purchased for $147.3 million in cash, at an average price of $27,053 per BTC.
According to a filing with the United States Securities and Exchange Commission, MicroStrategy and its subsidiaries acquired this amount between August 1 and September 24. As of September 24, the company and its subsidiaries held a total of approximately 158,245 BTC, acquired at an average purchase price of around $29,582 per coin, inclusive of fees and expenses. This brings the total purchase price for MicroStrategy’s Bitcoin holdings to $4.68 billion.
The new purchase comes at a time when Bitcoin has been trading sideways, hovering around $26,000 for the past few weeks. Although the cryptocurrency briefly reached $28,000 on August 29, it dropped to as low as $25,000 on September 11. Currently, Bitcoin is trading at $26,081, experiencing a 1.9% decrease in the past 24 hours and a 4% decrease over the past week, according to data from CoinGecko.
MicroStrategy’s latest purchase reaffirms the company’s unwavering belief in the potential of Bitcoin. In June 2023, the firm acquired 12,333 BTC for $347 million, at an average purchase price of $29,668 per coin. This consistent accumulation of Bitcoin reflects MicroStrategy’s confidence in the long-term value of the cryptocurrency.
The company’s bullish stance on Bitcoin has been driven by its previous financial success. In the first quarter of 2023, MicroStrategy reported its first profitable quarter since 2020, largely due to a one-time income tax benefit. The company continued to maintain profitability in the next quarter, reporting $22.2 million in net income in early August.
MicroStrategy’s consistent and substantial investments in Bitcoin demonstrate its commitment to diversifying its treasury holdings and capitalizing on the potential of digital assets. As a renowned business intelligence firm, MicroStrategy’s ongoing support of Bitcoin adds credibility to the cryptocurrency market and further strengthens its position as a viable investment option.
This latest acquisition by MicroStrategy highlights the increasing adoption of Bitcoin by institutional investors. Corporate giants like MicroStrategy are recognizing the value and potential of cryptocurrencies as an alternative store of value, and are allocating significant resources to acquire this digital asset. As more institutions enter the market, Bitcoin’s legitimacy as a mainstream investment is solidifying.
Overall, MicroStrategy’s latest purchase of Bitcoin reinforces its bullish stance on the cryptocurrency and emphasizes the company’s belief in its long-term value. With its significant holdings and continued investments, MicroStrategy is positioning itself as a leader in the integration of traditional finance and digital assets, contributing to the widespread adoption and acceptance of cryptocurrencies.