MicroStrategy Adds More 2,574 Bitcoin to its Crypto Reserve

By Ibiam Wayas December 07, 2020 In Bitcoin, Institutions, Microstrategy

Publicly-traded business intelligence company MicroStrategy has purchased an additional US$50 million Bitcoin (BTC), according to the CEO, Michael Saylor. The recent purchase further strengthens the company’s stand as the largest company holding the cryptocurrency as a reserve asset. By investing in Bitcoin, the company sees it as a better inflation-hedge asset against cash, including Gold. 

Many other companies like Square have joined the train, adding a massive amount of Bitcoin to their reserve.

MicroStrategy now Holds Over 40,000 Bitcoin

The US$50 million Bitcoin purchase was also confirmed in the company’s recent filing with the United States Security and Exchange Commission (SEC). At such an amount, MicroStrategy could buy 2,574 Bitcoin at the average price of $19,427 yesterday. This is the third time MicroStrategy is acquiring Bitcoin. In August, the business intelligence firm purchased the first whopping amount of 21,454 BTC for US$250 million at the average price of $11,635.

About one month later, MicroStrategy announced an additional 16,796 BTC for $175 million. Overall, the company now has about 40,824 Bitcoin as cryptocurrency reserve. At today’s price of US$18,866 on Coinmarketcap, MicroStrategy’s Bitcoin treasury is worth over US770 million. Such a massive number of Bitcoin indicates the level of confidence the company and its board members have in the leading cryptocurrency. While giving reasons for the crypto treasury, MicroStrategy explained that:

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“If you have large dollar values and you’re hoping for any kind of return on them, that’s faded. Gold, silver, and bitcoin are showing strength. […] Hence, if we look at assets, gold, silver, bitcoin, and equities have all been accreting as the dollar has been weakening.”

Corporate Bitcoin Investors

MicroStrategy’s move into Bitcoin had caused many companies to rethink allocating a portion of their reserve in the cryptocurrency. On this train is Square Inc., which purchased about US$50 million worth of Bitcoin. Among others, Galaxy Digital Holdings also has about US$130 million worth of Bitcoin in its reserve.

Ibiam Wayas
Author

Ibiam Wayas

Ibiam is an optimistic crypto journalist. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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