MicroStrategy Continues Bitcoin Shopping Spree: Adds 3,907 BTC ($177M) to Its Treasury

Enterprise and analytics software company, MicroStrategy is back in its bitcoin buying spree with a new groundbreaking bitcoin purchase today.

In a Tuesday filing with the Securities and Exchange Commission (SEC), MicroStrategy revealed that it has completed the purchase of 3,907 bitcoins for $177 million in cash, at an average price of approximately $45,294 per coin, inclusive of all transaction fees and expenses.

This new purchase brings the company’s bitcoin holdings to a total of 108,992 bitcoins, which were acquired at an aggregate purchase price of $2.918 billion and an average price of approximately $26,769 per bitcoin.

MicroStrategy’s Bitcoin Gains Double as Price Increases

The past few months have been very bearish for bitcoin, with several issues fueling the bear market including Tesla’s withdrawal from accepting bitcoin payments, China’s crackdown on bitcoin mining facilities, and rising FUD in the market.

However, bitcoin recently broke past the $50k resistance and that brought MicroStrategy’s accumulated bitcoins to a whopping $5.2 billion. 

The company has long indicated no interest in stopping its buying spree nor selling off its bitcoin holding. MicroStrategy’s CEO, Micheal Saylor, has always been vocal about his deep-seated conviction in bitcoin’s potential and is determined to continue holding it for as long as possible.

Institutional Interest Soars

Despite the recent massive price correction in the crypto market, studies have shown that a growing number of large institutional investors are becoming increasingly interested in bitcoin and are willing to take a long-term bet on its future.

Bitcoin’s ability to always bounce back even after plummeting to depths had increased the conviction that these investors had in its potential.

A recent survey even noted that about 74% of hedge fund managers in the UK are planning to increase their bitcoin exposure within the next two years.

While the prospect of accumulating massive profit was a major driving factor, these investors also pointed out that the increasing regulatory clarity in the crypto space is also driving bitcoin adoption.