Weeks After $1B Bitcoin Purchase, MicroStrategy Buys Another $15M Worth Of Cryptocurrency
What Happened: MicroStrategy Incorporated (NASDAQ: MSTR) 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.
MicroStrategy has purchased an additional ~262 bitcoins for ~$15.0 million in cash at an average price of ~$57,146 per #bitcoin. As of 3/12/2021, we #hodl ~91,326 bitcoins acquired for ~$2.211 billion at an average price of ~$24,214 per bitcoin. $MSTRhttps://t.co/QIQP30rv2q
— Michael Saylor (@michael_saylor) March 12, 2021
This marks MicroStrategy’s third Bitcoin purchase in 2021 and comes only a few weeks after it announced a $1.026 billion Bitcoin purchase from the proceeds of its convertible note sale.
While over 21 public companies have now disclosed that a portion of their treasury reserves has been allocated to Bitcoin, MicroStrategy’s accumulation far outpaces them – the software company owns just under 0.5% of Bitcoin's total supply.
Why It Matters: Since its initial investment in August 2020, the price of Bitcoin has surged by over 400%. However, the company continued its strategic Bitcoin purchases even at these considerably higher price points.
MicroStrategy Performance
Mar. 11, 2021Since the start of its #Bitcoin treasury program:$MSTR +496% $BTC +407%$NASDAQ +20% pic.twitter.com/Y5oguEQX4e
— ecoinometrics (@ecoinometrics) March 12, 2021
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
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