Microstrategy continues its bitcoin (BTC) investment strategy. The Michael Saylor-led company added 1,045 bitcoins to its wallet. The announcement comes as the company has also repaid significant debt to the now defunct Silvergate bank.
Acquisition of 1,045 additional bitcoins
Michael Saylor never tires of Bitcoin. In fact, his company Microstrategy revealed the purchase of 1,045 bitcoins for $29.3 million. The average purchase price was $28,016. According to a recent SEC filing, the transaction was completed between March 24 and April 4.
This acquisition brings the company’s total bitcoin assets to 140,000 units. Microstrategy has invested $4.17 billion to build this BTC wallet. Despite a difficult crypto winter, the firm’s investment is approaching profitability. The average purchase price per bitcoin is now $29,803. It is not far from the current price of bitcoin, estimated at $28,062 at the time of writing this article.
Microstrategy pioneering enterprise adoption of Bitcoin
Since its initial investment in bitcoin in August 2020, Microstrategy has played a crucial role in the adoption of cryptocurrency by businesses. Other companies, such as Tesla and Square (now Block), led by former Twitter CEO Jack Dorsey, soon followed suit.
The fear was that the fall in the price of bitcoin would prevent Microstrategy from honoring its debts. However, the company proved its strength by repaying its $205 million debt to Silvergate Bank at a 21% discount.
Not only did the company repay the loan two years ahead of schedule, but it also continued to invest in bitcoin. Microstrategy has thus become one of the largest holders of BTC, with a portfolio representing 0.7% of the total supply.
Michael Saylor’s strategy is based on a long-term vision. He bets on bitcoin’s potential as “sound money”. This is a way for him to protect himself against the vulnerabilities of a bankrupt financial system. Although bitcoin is volatile, Mr. Saylor is counting on this double-edged sword to achieve a positive outcome.
The acquisition of an additional 1,045 bitcoins by Microstrategy demonstrates the company’s confidence in bitcoin’s long-term value. For the company, Nakamoto’s invention represents 2.0 gold. With a portfolio of 140,000 coins, the company is well positioned to take advantage of the potential growth of Bitcoin and to continue to drive the adoption of cryptocurrency by businesses.
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