Business intelligence firm MicroStrategy has made another hefty Bitcoin (BTC) investment
MicroStrategy is not done yet with crypto investments this year as it splurged $650 million in its latest Bitcoin purchase. The funds used to facilitate the acquisition were proceeds of its debt issuance. Michael Saylor, the chief executive, announced the purchase yesterday on Twitter.
The company already has substantial Bitcoin holdings and following the latest purchase, the number of bitcoins in the company’s reserve has shot up to 70,470 BTC. The firm has spent a total of $1.125 billion to acquire its entire BTC stash.
“MicroStrategy has purchased an additional 29,646 bitcoins for $650 million at an average price of $21,925 per #Bitcoin and now #hodl an aggregate of 70,470 bitcoins purchased for $1.125 billion at an average price of $15,964 per Bitcoin”.
The first purchase was completed in August when the company acquired 21,000 BTC. At the time, the portion was equivalent to about $250 million. Since then, the company has made several other Bitcoin purchases that have steered it higher in the list of institutions with the largest BTC investment.
The intelligence firm likely took advantage of the market correction to make the additional purchase. MicroStrategy is now the fifth-largest individual owner of Bitcoin in the world, with its BTC holdings translating to over $1.6 billion at the current prices.
“The acquisition of additional bitcoins announced today reaffirms our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value”, Michael Saylor asserted.
The latest BTC purchase also means that the company has surpassed the US government in terms of owned Bitcoin. The US government is reported to have 69,420 BTC in its possession. From another perspective, MicroStrategy may be able to exercise more influence over the crypto market.
Many companies have turned to Bitcoin resulting in an increase in the growth and adoption of the digital asset. Institutions now have a hand in the supply and demand aspects of the Bitcoin market and its price. At the time of writing, the crypto asset is sitting below the $23K level and is trading at $22,721—up 0.24% in the last 24 hours.