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MicroStrategy Buys Another $10 Million Of Bitcoin, Adds To Reserve

Tyler Durden's Photo
by Tyler Durden
Tuesday, Feb 02, 2021 - 03:45 PM

Via PlanetFreeWill.news,

Business intelligence and mobile software firm MicroStrategy has further added to its bitcoin holdings, disclosing on Tuesday that it purchased an additional $10,000,000 of the world’s largest crypto by market capitalization.

“MicroStrategy has purchased approximately 295 bitcoins for $10.0 million in cash, at an average price of ~ $33,808 per #bitcoin. We now [hold] ~ 71,079 bitcoins acquired for $1.145 billion at average price of ~ $16,109 per bitcoin,” the Company’s CEO, Michael Saylor, tweeted.

MicroStrategy first disclosed it was purchasing bitcoin as a part of its treasury reserve policy in August 2020 when at the time the company purchased 21,454 bitcoin at a price of $250 million.

CEO Michael Saylor has been vocally touting bitcoin as a more superior reserve asset and store of value than the US dollar and gold.

“We find the global acceptance, brand recognition, ecosystem vitality, network dominance, architectural resilience, technical utility, and community ethos of Bitcoin to be persuasive evidence of its superiority as an asset class for those seeking a long-term store of value,” Saylor said after the intital disclosure, adding:

“Bitcoin is digital gold – harder, stronger, faster, and smarter than any money that has preceded it. We expect its value to accrete with advances in technology, expanding adoption, and the network effect that has fueled the rise of so many category killers in the modern era.”

On February 3 and 4, MicroStrategy is hosting a corporate conference titled “Bitcoin for Corporations where the company will share strategies on acquiring and using bitcoin as a treasury reserve asset.

According to Saylor, the bitcoin themed conference is attracting more CEO attention than any event they have held in the past.

As Coin Desk notes, in the company’s earnings call last week, Saylor had mentioned that MicroStrategy is set to “continue to actively manage” its balance sheet and “progressively acquire more bitcoin” at prices “that probably keep going up.”

“Regarding our bitcoin strategy, our pioneering decision to make bitcoin our primary treasury reserve asset has made MicroStrategy a thought leader in the cryptocurrency market and generated great interest in MicroStrategy as a corporation,” the CEO said.

Since starting its allocation into bitcoin, MicroStrategy’s stock price has increased over 350%.

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