MicroStrategy add $15M to its $1B Bitcoin Purchase
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What Happened: MicroStrategy Incorporated MSTR -4.63% just bought another $15 million worth of Bitcoin (CRYPTO:BTC), taking its total holdings to 91,326 BTC worth over $2.2 billion.
The company’s CEO announced the purchase on Twitter, saying that the 262 BTC was acquired at an average purchase price of $57,146.
This marks MicroStrategy’s third Bitcoin purchase in 2021 and comes only a few weeks after it announced a $1.026 billion Bitcoin purchase from the proceeds of its convertible note sale.
While over 21 public companies have now disclosed that a portion of their treasury reserves has been allocated to Bitcoin, MicroStrategy’s accumulation far outpaces them – the software company owns just under 0.5% of Bitcoin's total supply.
Why It Matters: Since its initial investment in August 2020, the price of Bitcoin has surged by over 400%. However, the company continued its strategic Bitcoin purchases even at these considerably higher price points.
In fact, since the initial announcement of its Bitcoin treasury program, shares of MicroStrategy have moved largely in tandem with Bitcoin’s price but have returned over 496% during the same period.
With such a sizable amount of Bitcoin in its reserves, many investors saw the opportunity to trade shares of MicroStrategy as they would a Bitcoin exchange-traded fund.
Price Action: Bitcoin was trading at $56,400 at the time of writing – down from its high of $58,091 seen earlier today.
Image: Executium via Unsplash