- Recently, MicroStrategy bought 810 bitcoins worth $13.6 million to bring its total BTC reserves to 132,500.
- Saylor was instrumental in MicroStrategy’s BTC acquisition, as he oversaw the company’s purchase of the asset in installments.
The ongoing cryptocurrency market bear trend and the decline in the value of BTC are not enough to deter MicroStrategy, founded by Michael Saylor, from increasing its BTC reserves. Recently, the software company added approximately 2,395 BTC tokens worth $42.8 million between November 1st and December 21st. According to a filing with the US Securities and Exchange Commission (SEC), the firm made the purchases through its subsidiary (MacroStrategy) on December 28.
Last Thursday, the software developer sold 704 BTC for $11.8 million, making the loss on the transaction enough to offset the previous capital gain. However, on Saturday, MicroStrategy bought 810 bitcoins worth $13.6 million to bring its total BTC holdings to 132,500.
Based on BTC’s current price, the latest purchase means that Microstrategy’s BTC stash is now worth $2.25 billion. Considering that it cost the company $4 billion to acquire all BTC assets, that would be a loss. Meanwhile, last week’s sale marked the first time the firm sold its holdings since it began buying cryptocurrencies in 2020.
A further breakdown of MicroStrategy’s BTC purchases shows that the company added 2,501 BTC on Nov. 1, spending $44.6 million on the purchase. According to current Coingecko data, the company’s shares saw marginal gains during the week’s premarket session, while the price of BTC fell below $17,000 as it traded at $16,601 at the time of writing.
Leading Institutional Bitcoin Investment
It is known that the American software company has been the largest institutional investor in Bitcoin since the cryptocurrency trading became mainstream. MicroStrategy rose to its current position of being BTC’s largest institutional investor under the leadership of former CEO Michael Saylor.
Saylor was instrumental in MicroStrategy’s BTC acquisition, as he oversaw the company’s purchase of the asset in installments. Interestingly, the company has made several purchases at different BTC prices over the past two years. However, the ongoing crypto winter has had a serious impact on the company’s BTC investment, with paper losses reaching billions of dollars.
Saylor, a bitcoin maximalist, believes that BTC is the best investment strategy for MicroStrategy and has repeatedly reinforced his motivation during his tenure as CEO of the software firm. In addition, Saylor noted that investing in BTC makes more sense than holding cash, and unlike ETH, BTC has a limited supply.
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Is MicroStrategy a Bitcoin-Based Business?
It should be noted that the company’s shares, although a Bitcoin investment, are not limited to cryptocurrency as many think. MicroStrategy’s actual business has nothing to do with crypto, and the core of its operations has nothing to do with any digital asset. According to the company’s last year’s profit reports, it made a profit of 500 million dollars.
Industry experts believe that if the company sticks to investing in BTC instead of cash, it will benefit well from its investment in the years to come. Meanwhile, as MicroStrategy continues to acquire BTC, some members of the crypto community worry that these holdings will give the company undue influence on the price of BTC over time.
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