Microstrategy’s thirst for bitcoin can only be quenched by the acquisition of more BTC.
And today, the publicly-traded bitcoin firm made a big bet on bitcoin after splashing a little over $1 billion in buying additional BTC.
$1 billion+ bitcoin purchase
The tech firm, which has become a major player in the crypto sphere, announced today that it had “purchased an additional approximately 19,452 bitcoins for approximately $1.026 billion in cash at an average price of approximately $52,765 per bitcoin, inclusive of fees and expenses.
As of Feb. 24, the business intelligence software company holds an aggregate of approximately 90,531 bitcoins, which were acquired at an aggregate purchase price of approximately $2.171 billion.
The firm has bought each bitcoin at an average price of $23,985 inclusive of fees and expenses.
MicroStrategy’s bitcoins are worth $4.4 billion at the time of writing, a return on investment of more than 100%.
The $1 billion-purchase is the largest single investment by a known and publicly traded company in the U.S., except for Tesla which parted ways with $1.5 billion in exchange for bitcoins on its balance sheet.
Squar Inc., a financial services company headed by bitcoin advocate and Twitter CEO Jack Dorsey bought additional bitcoins worth $170 million.
A dependable store of value
MicroStrategy CEO Michael Saylor said that the company has kept its eyes on its two corporate strategies of growing the firm’s enterprise analytics software business and acquiring and holding bitcoin.
The company announced on Feb. 16 that it wanted to raise $600 million via debt financing to acquire more bitcoins.
Saylor added that the firm believes that bitcoin “can serve as a dependable store of value.”
“We will continue to pursue our strategy of acquiring bitcoin with excess cash and we may from time to time, subject to market conditions, issue debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase additional bitcoin.”
Bitcoin corporate poster boy
While Tesla’s Elon Musk has proven through his tweets, he can influence the crypto market, particularly Dogecoin, Saylor has positioned himself as a poster boy for corporate leaders betting on bitcoin.
He held a virtual summit where he pitched bitcoin to thousands of corporate leaders.