Business intelligence and software company MicroStrategy announced another Bitcoin purchase. According to the firm’s announcement, the company has added 205 bitcoins to its treasury, with each BTC acquired an aggregate price of $48,888. Now MicroStrategy has a total of 91,064 BTC in its custody, acquired at an aggregate price of $2.196 billion, which brings the average price of each BTC unit held by the firm to $24,119. The company spent $10 million for the recent acquisition, covering both fees and other expenses
MicroStrategy was among the first fortune 500 companies to see the potential in Bitcoin. The software giant started purchasing Bitcoin back in August 2020 when the top cryptocurrency was trading around $13,000, and since then, it hasn’t stopped. Apart from direct cash purchases from its treasury, the software solution provider has also raised nearly $1.65 billion in debt security by offering the company’s convertible notes. The firm first sold almost $650 million worth of debt security in December last year, and only last month, it raised another billion dollars through the issuance of convertible notes.
According to a recent statement, the firm plans to continue investing in Bitcoin and growing its holdings. “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 to use the proceeds to purchase additional bitcoin,” -MicroStrategy CEO Michael Saylor.
Institutions Still Bullish on Bitcoin
Bitcoin price has failed to hold $50,000 despite seeing several bullish rallies above $52,000. After recording a new all-time high of $58,352 in the third week of February, the price recorded a sharp correction. However, institutions seem to be still buying heavily as Coinbase outflows continued throughout this consolidation phase.
The on-chain metrics for Bitcoin, combined with the fact that Grayscale Premium is at the lowest in history, and many believe a top cryptocurrency’s more extended consolidation phase would give it a better pump for the next bull relly, with most of the analysts shifting their short-term Bitcoin price target to $70K.
MicroStrategy’s investment in the BTC market paved way for other corporations to follow suit.
Also Read: MicroStrategy Will Now Pay It’s Board of Directors (BOD) in Bitcoin
Remarkable, BTC investments from institutions after MicroStrategy includes Tesla’s $1.5 billion Bitcoin purchase announced last month. Jack Dorsey (CEO of Twitter Inc.) has also invested $220 million into Bitcoin.
Microstrategy’s Thursday purchase is mostly symbolic, but the more important note is that MicroStrategy did not sell bitcoin, although it’s the stock price has fallen 50% since February highs.
