While the recent correction in the price of Bitcoin caused some investors to panic and sell off the cryptocurrency, leading business intelligence company MicroStrategy increased its bitcoin position.
The company announced Wednesday’s purchase of 19,452 bitcoins worth $1.026 billion in cash at an average price of approximately $52,765 per bitcoin, including fees and expenses. This recent purchase has brought MicroStrategy bitcoin holding to a total of 90,531 bitcoins worth $2.171 billion acquired at an average price of $23,985 per bitcoin as at the time of writing.
MicroStrategy focused on offering analytics software services added acquiring and holding bitcoin to develop its enterprise. Phong Le, President & CFO, MicroStrategy Incorporated, commented on why the company took that step.
He said,
We believe our bitcoin strategy, including our bitcoin holdings and related activities in support of the bitcoin network, is complementary to our software business, by enhancing awareness of our brand and providing opportunities to secure new customers.
The company also believes that by introducing bitcoin into its system, it provides better service to its enterprise analytics customers and, at the same time, growing into becoming a “profitable business intelligence company.”
Since its first purchase of 21,454 Bitcoins, which was worth about $250 million late last year, MicroStrategy has not relented to add more bitcoin to its primary treasury reserve.
Michael J. Saylor, CEO of MicroStrategy Incorporated, began his bullish run on Bitcoin after recognizing Bitcoin as a legitimate investment asset and prefers to hold it more than cash.
This conviction might have been fueled by the influx of monetary stimulus by the U.S Federal Reserve and the fact that the central bank isn’t planning to raise interest rates anytime soon as he claimed, advising other investors to look elsewhere for alternatives.
Following the latest purchase, Saylor said, ” We will continue to pursue our strategy of acquiring bitcoin with excess cash, and we may, from time to time, subject to market conditions, issue debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase additional bitcoin.”
Meanwhile, Square Inc. also increased its bitcoin position with a $175 million investment announced this week.
