MicroStrategy snaps up more Bitcoin, BTC holdings worth over $750mln

   2020-12-05 07:12

Business intelligence and software firm MicroStrategy has added another $50mln of Bitcoin to its treasury holdings, giving it more than half a billion in BTC.

CEO Michael Saylor shared the update on his personal Twitter handle, announcing that the firm had acquired an additional 2,574 Bitcoin for $50mln. The BTC acquisition was at an average price of $19,427 per Bitcoin.



According to an official filing with the United States Securities and Exchange Commission, MicroStrategy now holds approximately 40,824 Bitcoin. The filing also states that MicroStrategy’s Bitcoin holdings were ‘acquired at an aggregate purchase price of $475mln’.

Holdings now worth more that $750mln

In August the company made waves for its decision to allocate a sizable portion of its capital directly into Bitcoin holdings. It’s initial $250mln investment was made after it had met obligations to shareholders, giving the company 21,454 BTC for its treasury holdings.

At the time, Saylor indicated that the investment was driven by the company’s belief that Bitcoin is ‘a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash’.

Perhaps more emphatic was Saylor’s insistence that Bitcoin was a superior investment to holding fiat currency and that the company had made Bitcoin its principal holding in its treasury reserve strategy.

MicroStrategy then made another significant acquisition of Bitcoin in September 2020, adding another 16,796 additional Bitcoin at an aggregate purchase price of $175 million. 

It’s first acquisition 21,454 BTC in August corresponded with Bitcoin’s price being around the $11,700 range while its second acquisition of 16,796 BTC was made when the price had dipped to around $10,700.

The combined total of those two acquisitions equates to 38,250 BTC. Taking into account the current price of Bitcoin at $18970 at the time of publishing, MicroStrategy’s initial two investments are now worth around $725mln.

Add in the additional $50mln purchase of 2,574 BTC and MicroStrategy’s current holdings are worth more than $750mln.


Original Source