MicroStrategy CEO, Michael Saylor made the waves in August when he decided to convert $425 million of his company’s cash reserves into Bitcoin.
However, he has now disclosed that he personally holds 17,732 BTC (appr. $175 million) acquired at an average price of $9,882. The company was aware of these holdings before deciding to approve his request for company holdings to also be invested in Bitcoin.
Some have asked how much #BTC I own. I personally #hodl 17,732 BTC which I bought at $9,882 each on average. I informed MicroStrategy of these holdings before the company decided to buy #bitcoin for itself.
— Michael Saylor (@michael_saylor) October 28, 2020
With Bitcoin trading at a $13,320 price at the time of writing, Saylor’s Bitcoin holdings would be worth $263.3 million, a roughly 30% increase between the time of purchase.
MicroStrategy’s Bitcoin Bet Already Paying Off
As Coinfomania reported earlier this week, MicroStrategy’s Bitcoin bet is already paying off handsomely. At the peak of Bitcoin’s price yesterday, the 38,250 BTC being held by the company had gained $100 million. The said sum was worth more than the company’s earnings in the last three and a half years.
At the same time, MicroStrategy’s stock (MSTR) price has also responded favorably to the development, gaining roughly 25% since the initial announcement of the Bitcoin purchase. The company’s shares are providing investors indirect exposure to Bitcoin, and have been labeled by many as a back-door exchange-traded funded (ETF).
At the time of writing, Bitcoin had a market cap of $247 billion, with a 9% increase in the last seven days.