In an official announcement, U.S based Business Intelligence firm MicroStrategy announces additional Bitcoin purchases. MicroStrategy’s Bitcoin holdings aggregate to a whopping over approximately $1 billion in value with the recent purchase. In addition to its Treasury Reserve Policy, it acquired approximately 29,646 bitcoins at an average price of $21,925 inclusive of additional expenses. Therefore, the current purchases sum up to $650 million in cash.
Bitcoin soars high amidst institutional participation.
On 21st December 2020, the market price on Coinbase was approximately $23,910 per bitcoin. Nonetheless, Michael Saylor’s MicroStrategy secured the pioneer cryptocurrency resulting in an aggregate holding of 70,470 bitcoins. Per its current holdings, the cost of acquiring each bitcoin averages at $15,964 inclusive of expenses and fees. MicroStrategy’s current holding stands at 0.033% of the total bitcoin supply. The company reinforces that Bitcoin is a dependable store-house of value with its latest acquisition. It also believes that recent stock appreciation is due to the improved performance and profitability of the company.
Phong Le, the company’s President & CFO, stated that MicroStrategy believes that employing cash for Bitcoins will lead to better return opportunities and increased value against cash holdings. However, the company is keen on possibilities in the future to utilize prevalent cash flows effectively.
“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. We also remain dedicated to our customers and our goal of operating a growing profitable business intelligence company.”
Earlier, MicroStrategy announced a debt security raise of $400 million. It ultimately drew in funds worth $650 million due to over-subscription. The intention of raising funds was to purchase more Bitcoins. As of today, MicroStrategy has fulfilled its plans as promised. Recently, Michael Saylor clarified billionaire Elon Musk’s queries relating to large transactions of cryptocurrencies. The former advocated Elon Musk to follow the Bitcoin lead as a hedge for U.S. dollars.
Follow BitcoinWorld for the latest updates.