In a recent Twitter post on 5th December, MicroStrategy announced a purchase of additional 2,574 Bitcoin worth $50 million. Michael Saylor, Founder and CEO of MicroStrategy, confirmed the purchase. With Bitcoin surpassing its ATH previously, this news does not come as a surprise. MicroStrategy is a business intelligence firm based out of the United States. It has continuously shown a bullish attitude towards the crypto king, Bitcoin.
Furthermore, MicroStrategy CEO, Michael Saylor is a bitcoin maximalist consistently advocating the powers of Bitcoin. Additionally, with celebrities and institutional funds actively participating in the Bitcoin game, it seems to be bigger and more challenging.
MicroStrategy has purchased approximately 2,574 bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $19,427 per bitcoin. We now hold approximately 40,824 bitcoins.
Michael Saylor, MicroStategy
The announcement gained massive traction for the community. Bitcoin advocate and Co-founder of Investor’s Podcast Network, Preston Pysh replied to Saylor’s announcement saying,
In the squeakiest and saltiest voice you can muster: “But Michael, are you a data analytics company or are you crypto hedge fund?” …Because my brain can only think in terms of managing other people’s money for low volatility and not banking profits onto a balance sheet…
Preston Pysch
MicroStrategy currently holds 40,824 bitcoin in their treasury acquired at a wholesome price of $475 million. Therefore, it was inclusive of all additional fees and expenses. Moreover, the recent purchase is with respect to its Treasury Reserve Policy. MSTR’s share has surged by 170% previously with Saylor slightest hint towards possible investments in Bitcoin. Crypto exchange giant, Coinbase brokered MicroStrategy’s original purchase. As with MicroStrategy, its previous Bitcoin investments already entails profits. Thus, with its current investment, it aims to eschew inflation of fiat for Bitcoin.
Bitcoin to possibly continue the bullish phase
We all observed the Bitcoin price rally. The major reason behind this is the institutional interest in virtual digital assets. With big players occupying the space, there’s a natural FOMO for Bitcoin. Moreover, institutions are currently gulping huge amounts of Bitcoin into their chests on behalf of their investment strategy. From what was seen as a scam to now as digital gold, Bitcoin’s journey in itself is commendable.
Recently, Grayscale added about approximately 7,000 Bitcoin in its chest thus totalling its current holdings to 546,544 BTC as a part of its AUM.
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