MicroStrategy, a US-based company specializing in business intelligence, recently revealed that it had purchased an additional 1,045 Bitcoin for around $29.3 million, with an average price of $28,016 per BTC.
This latest acquisition brings the company’s total holdings to a staggering 140,000 BTC, acquired for around $4.17 billion at an average price of $29,803 per BTC.
This news was announced via a tweet by MicroStrategy’s founder, Michael Saylor, on April 5th. For s long period of time, Saylor has been advocating to use of cryptocurrencies as a strategic asset and has been a prominent supporter of Bitcoin.
According to his belief, Bitcoin stands out as the most secure and dependable store of value currently accessible in the market. He also thinks that it provides a distinct prospect for companies to safeguard their assets against inflation.
MicroStrategy’s Bitcoin Strategy
MicroStrategy’s Bitcoin strategy appears to be dollar-cost averaging with vast amounts of money. The company made its first BTC purchase in August 2020 and has been consistently adding to its holdings since then.
As reported by TronWeekly previously, On March 27th, it was revealed in a filing with the SEC that MicroStrategy had purchased 6,455 Bitcoins at the cost of around $150.0 million in cash.
This acquisition was made over the course of a month, starting on February 16th and ending on March 23rd, with an average price per BTC of approximately $23,238, which includes all related fees and expenses.
MicroStrategy’s Bitcoin holdings are presently valued at around $12.6 billion, demonstrating the company’s commitment to adopting Bitcoin as a reserve asset.
MicroStrategy’s huge BTC holdings demonstrate the growing acceptability of cryptocurrencies as corporate assets. Other companies, like Tesla, Square, and PayPal, have made BTC investments in recent years.
Yet, increased corporate use of BTC is a positive indicator of the cryptocurrency’s future as a mainstream asset class.
BTC’s price has been volatile throughout the years, with significant fluctuations in value, but its long-term potential as a store of value is becoming clear. As more corporations invest in BTC, the cryptocurrency’s reputation as a reliable and secure asset will only continue to grow.