Microstrategy, a publicly-traded business intelligence software company, now owns more than 71K bitcoins following the purchase of additional BTC today, the company announced.
The firm bought 295 bitcoins for $10 million in cash at an average cost of $33,808 per coin.
“Microstrategy has purchased approximately 295 bitcoins for $10 million in cash, at an average price of ~ $33,808 per bitcoin,” said Microstrategy CEO Michael Saylor in a Twitter post.
Microstrategy aggressively buys bitcoin
Microstrategy has been on an aggressive buying spree since it started buying bitcoin in August last year.
While today’s purchase is relatively small in comparison with the firm’s previous purchase, it re-affirms the company buying strategy.
The company has splashed over $1.1 billion on bitcoin purchases, making it one of the most bitcoin-friendly companies in the world.
“We now hodl ~ 71,079 bitcoins acquired for $1.145 billion at (an) average cost of ~ $16,109,” tweeted Saylor.
MicroStrategy has purchased approximately 295 bitcoins for $10.0 million in cash, at an average price of ~ $33,808 per #bitcoin. We now #hodl ~ 71,079 bitcoins acquired for $1.145 billion at average price of ~ $16,109 per bitcoin.https://t.co/lmj3QCgKbw
— Michael Saylor (@michael_saylor) February 2, 2021
In fiat value, Microstrategy’s bitcoin stash is now worth $2,474 billion, more than twice the total buying price.
Saylor has become very vocal in the crypto scene and has said that the company plans to continue holding its bitcoin “and invest additional excess cash flows in bitcoin.”
Companies are always on the lookout for ways in which their money can bring in better returns. It seems that Microstrategy sees bitcoin as a way of getting a good return on investment.
“The company continues to believe bitcoin will provide the opportunity for better returns and preserve the value of our capital over time compared to holding cash,” said Phone Le, the company’s President and CFO.
Microstrategy’s investment in bitcoin has paid off as the digital asset’s price continues to trade above the $30K range.
An example to companies
The firm has become an example to other corporations that may be interested in converting a part of their balance sheet into bitcoin.
Microstrategy is hosting the Bitcoin for Corporations event in which they discuss what the company calls the “groundbreaking treasury reserve strategy.”
Saylor and Phong Le will be part of the event as well as Digital Galaxy founder Mike Novogratz and executives from Binance, Kraken, Coinbase, NYDIG, Fidelity Digital Assets, Genesis, Gemini, and Paxos.