Publicly-traded business intelligence company, MicroStrategy has shown no signs of ever slowing down on its bitcoin purchase as it has once again added approximately 295 bitcoins, worth $10 million at the time of writing, to its Treasury Reserve.
The purchase was made at an average price of $33,808 per bitcoin. The company currently has a total of 71,079 bitcoins in its possession, valued at $1.145 billion.
MicroStrategy shocked the entire crypto industry when it made its first bitcoin purchase, about 21,454 bitcoins, and made the digital asset its primary reserve asset.
Although many crypto proponents and critics as well thought that the purchase would be a one-time thing, MicroStrategy continued in its buying spree and even made plans to sell up its convertible senior notes to raise more funds.
Despite being the largest and most popular cryptocurrency, bitcoin is not the absolute favorite among traditional financial institutions. Some critics have often demeaned its worth as a good store of value and termed it an “uninvestable asset.”
On the other hand, MicroStrategy’s CEO, Michael Saylor, disagrees with these critics. He is very vocal about his belief in the bitcoin’s potential as a legitimate investment asset better than cash.
He even revealed that he personally has a total of 17,732 bitcoins which he had acquired at an average price of $9,882.
Ever since MicroStrategy revealed its belief in bitcoin, several other top institutional investors have ventured into the cryptocurrency industry, with bitcoin as their entry point.
More Large Institutional Investors?
While several large enterprises are adding bitcoin to their portfolios, some have indicated an interest in the digital asset but are yet to make any purchase.
Tesla’s billionaire CEO, Elon Musk, has on several occasions shown interest in bitcoin. In one instance, he asked MicroStrategy’s CEO if large bitcoin transactions can be done without adversely affecting the market.
Just last week, he updated his Twitter bio with a single word “bitcoin.” This created an immediate bitcoin rally, resulting in a massive surge in the asset’s price.
Will Tesla eventually follow MicroStrategy’s footsteps and buy bitcoin? Only time will tell.
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