The entire cryptocurrency space has been bearish since Monday, and Bitcoin hasn’t been left out of this trend. The “King Crypto” recorded its highest single-drop since its inception back on Monday. While this may sound like ominous news, many institutional-grade Bitcoin investors are using this as an opportunity to increase their BTC position.
Not to be left out, Nasdaq-listed business intelligence company MicroStrategy has revealed details of its recent Bitcoin purchase. The company, in an official press release, disclosed that it has spent a whopping $1.026 billion and acquired about 19,452 bitcoins. According to reports, the company purchased each Bitcoin alongside network fees, charges, and expenses at approximately $52,765.
MicroStrategy’s Previous Bitcoin Purchases
MicroStrategy has been touted as the source of the 2020 Bitcoin price rally following its initial purchase of $250 million in BTC. The company is also the first-ever Nasdaq-listed company to buy Bitcoin. Following its initial purchase, the company also spent an additional $175 million on Bitcoin. Therefore, bringing its entire purchase in September 2020 to a whopping $425 million and an estimated 0.2% of the total Bitcoin supply.
Its recent purchase of $1.026 billion worth of BTC brings its total Bitcoin holdings to approximately 90,531 bitcoins. All of which were obtained at an estimated total of $2.171 billion. Each Bitcoin currently owned by MicroStrategy was purchased at an average price of $23,985, fees and expenses included.
Speaking on the recent purchase, Michael Saylor, CEO of MicroStrategy, disclosed that the compay’s two major focuses, for now, was holding Bitcoin and expanding its analytics software business. He further reiterated his belief in BTC being a reliable store of value. According to him, the company will continue to purchase Bitcoin with any extra cash. Saylor also disclosed that depending on market conditions, the company might “issue debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase additional bitcoin.”
Phong Le, President of MicroStrategy, also reaffirmed Saylor’s stance. He added that purchasing Bitcoin and the firm’s entire BTC holdings are intertwined with its vision to grow its business.
According to Bloomberg, MicroStrategy’s share price has surged by about 400% in the past year.
Interestingly, Jack Dorsey’s Square, despite the dip, also recently purchased an additional $170 million worth of Bitcoin.
Bitcoin (BTC) Price
At the time of publication, BTC was down by -2% and was trading at $46,763.36. Bitcoin also had a 24-hour low of $45,057.44 and a 24-hour high of $48,484.48. The “King Crypto” also had a market cap of $871,683,395,909 and a 24-hour trading volume of $56,016,129,224.
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