Publicly-traded business intelligence and software company, MicroStrategy has added more bitcoins to its portfolio, bringing its total holdings to $425 million.
The latest purchase was announced today by the company’s founder and CEO, Michael J. Saylor, in a tweet stating that the company has purchased a total of 16,796 bitcoins valued at $175 million.
On September 14, 2020, MicroStrategy completed its acquisition of 16,796 additional bitcoins at an aggregate purchase price of $175 million. To date, we have purchased a total of 38,250 bitcoins at an aggregate purchase price of $425 million, inclusive of fees and expenses.
— Michael Saylor (@michael_saylor) September 15, 2020
Just yesterday, Coinfomania reported that the company had submitted a filing to the U.S. Securities and Exchange Commission (SEC), indicating its intentions to purchase more bitcoins to increase its bitcoin reserve.
The NASDAQ-listed company that is worth more than $1.2 billion had shown interest in accumulating cryptocurrencies, especially Bitcoin, earlier this year and had since been able to purchase about 21,454 Bitcoins.
MicroStrategy had ventured into buying bitcoins because of its firm belief that the cryptocurrency is a promising investment asset with a dependable store of value than fiat currencies.
With the fast-increasing decline in the value of fiat currencies, the company sought an alternative that can not be affected by inflation like fiat, in addition to having a long-term appreciation potential.
The company wanted to leverage an investment asset that can yield massive returns for a long time to maximize long-term value for its shareholders.
This prompted the company to make an initial purchase of 21,454 Bitcoins, valued at around $250 million at that time. MicroStrategy also made Bitcoin its primary treasury reserve asset.
Bitcoin has overtime proved to be an outstanding investment choice for investors all around the world, with several remarkable qualities that are beneficial both to individual investors and to corporate entities.
MicroStrategy views the cryptocurrency as an investment asset that is far superior to fiat currency. This is supported by Saylor, who said:
“If you have large dollar values and you’re hoping for any kind of return on them, that’s faded. Gold, silver, and bitcoin are showing strength.”
With this recent acquisition of Bitcoin, MicroStrategy currently has in its possession a total of 38,250 Bitcoins that is worth about $425 million or 0.18% of the total bitcoin supply.