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- Recently, MicroStrategy purchased 810 Bitcoins worth $13.6 million to bring its total BTC holdings to 132,500
- Saylor has been instrumental in MicroStrategy’s BTC purchase as he oversees the company’s acquisition of the asset in installments.
The ongoing crypto market bear trend and the declining value of BTC are not enough to deter the Michael Saylor-founded MicroStrategy from increasing its BTC stash. Recently, the software development company added about 2,395 BTC tokens worth $42.8 million between November 1 and December 21. According to a filing with the US Securities and Exchange Commission (SEC), the firm made purchases through its subsidiary (MacroStrategy) on December 28.
Last Thursday, the software developer sold close to 704 BTC for $11.8 million under the guise that a loss on the transaction would be enough to balance the previous capital gains. However, on Saturday, MicroStrategy purchased 810 Bitcoins worth $13.6 million to bring its total BTC holdings to 132,500.
Based on BTC’s current price, the latest acquisition means Microstrategy’s BTC stash is now worth $2.25 billion. That would be a loss, given that it cost the company $4 billion to acquire all its BTC assets. Meanwhile, this past week’s sale was the first time the firm sold its holdings since it began buying the crypto asset in 2020.
A further breakdown of MicroStrategy’s BTC acquisition shows that the company added 2,501 BTC on November 1, spending $44.6 million on the purchase. The company shares have seen a marginal rise during the week’s premarket session, while BTC’s price hovers below $17,000 as it changes hands at $16,601 at the time of writing, according to current Coingecko data.
Leading Institutional Bitcoin Investment
It is well known that the American software firm has been the largest institutional investor in Bitcoin since crypto trading became mainstream. MicroStrategy reached its current position of being the largest institutional BTC investor under the leadership of its former CEO, Michael Saylor.
Saylor has been instrumental in MicroStrategy’s BTC purchase as he oversees the company’s acquisition of the asset in installments. Interestingly, the company made several purchases at varying BTC prices over the past two years. However, the ongoing crypto winter has heavily impacted the company’s BTC investment, with its paper losses running into billions of dollars.
Saylor, a Bitcoin maximalist, believes that BTC is the best investment strategy for MicroStrategy and has repeatedly reinforced his motive during his time as the CEO of the software firm. Furthermore, Saylor noted that investing in BTC is more logical than holding cash, and in contrast to ETH, BTC’s supply is limited.
Is MicroStrategy a Bitcoin-based Business?
It is worth noting that the company’s stock, though a Bitcoin investment, is not limited to the crypto asset alone, as many may assume. MicroStrategy’s actual business has nothing to do with crypto, and the core of its operations has no connection with any digital asset. According to the company’s earnings reports for last year, it made $500 million in profits.
Industry experts opine that if the company sticks to its BTC investment over cash, it will benefit handsomely from its investment in the coming years. Meanwhile, as MicroStrategy continues to BTC acquisition, some crypto community members are worried that these holdings will give the company undue influence over BTC’s price with time.
