A recent SEC filing shows that MicroStrategy purchased 301 Bitcoin between August 2 and September 20.
MicroStrategy purchased 301 Bitcoins (BTC) for around $6 million as highlighted in the firm’s filings. The latest acquisition takes MicroStrategy’s total BTC holdings to almost 130,000 Bitcoin, with a cumulative purchase price of $3.98 billion.
MicroStrategy Gets 301 BTC At $19.8K On Average
Business intelligence company MicroStrategy invested $6 million into Bitcoin, the firm’s filings with the U.S. Securities and Exchange Commission (SEC) indicate. The company purchased 301 BTC, bringing its cumulative holdings to around 130,000 BTC.
The latest acquisition comes in at an average price of nearly $19,851 per bitcoin, including fees and expenses. In general, MicroStrategy, a long-time supporter of Bitcoin, has invested up to $3.98 billion into the crypto so far, with an average buy price of $30,639.
But the company’s new $6 million investment in Bitcoin should not come as a surprise since the firm announced in the past week in a separate filing with the SEC that it wants to sell $500 million worth of stock and use the money to purchase more Bitcoin. These reports pushed MicroStrategy’s shares up by around 11%.
MicroStrategy’s first investment in Bitcoin traces back to August 2020, when the company invested around $250 million in the crypto as a treasury reserve asset, citing significant losses from cash and a weak dollar.
The company continued making huge-scale investments into Bitcoin and by May 2022, MicroStrategy had spent almost $3.965 billion buying Bitcoin. The firm almost encountered a margin call when Bitcoin dropped below $21,000.
MicroStrategy’s Bitcoin Investment Comes Amid A Crypto Drop Ahead Of Fed Meeting
In August, Michael Saylor, MicroStrategy’s co-founder, stepped down from his CEO role at the company to take another assignment as the company’s Executive Chairman. Only a day after he exited the top role, Saylor tweeted he plans to “focus more on Bitcoin” in the future.Buy Bitcoin Now
MicroStrategy’s latest bet on Bitcoin comes up a day after crypto assets dropped steeply as the markets prepare for another huge interest rate hike by the Federal Reserve on September 21. Ether and Bitcoin have lost over 50% each in the last six months due to a sharp crypto market sell-off because of inflation and a challenging macroeconomic environment.
The United States inflation in August came higher than previously expected, increasing the possibility of another 75 basis points interest rate hike by the Federal Reserve on September 21, after the two in June and July. Based on the Consumer Price Index (CPI) data, yearly inflation in August 2022 stood at 8.3%, higher than the consensus approximations of 8.0%.