Enterprise business software company MicroStrategy has added more bitcoins to its Treasury Reserves. According to a Dec. 4 FORM 8-K filing with the United States Securities and Exchange Commission (SEC), MicroStrategy “purchased approximately 2,574 bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy.”
The new bitcoins were acquired for an average price of $19,427 per bitcoin and bring the company’s total bitcoin holdings to 40,824 BTC or 0.194% of the total Bitcoin supply. The company has now converted $475 million of its cash assets to bitcoins and is the largest publicly-traded company by Bitcoin holdings.
CEO, Michael Saylor, who remains enthusiastic about the company’s unpopular decision to hold bitcoins instead of the US Dollar, announced the latest purchase on Twitter.
MicroStrategy has purchased approximately 2,574 bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $19,427 per bitcoin. We now hold approximately 40,824 bitcoins.https://t.co/nwZcM9zAXZ
— Michael Saylor (@michael_saylor) December 4, 2020
How is MicroStrategy’s Bitcoin Investment Portfolio Faring?
With the price of Bitcoin rallying since MicroStrategy’s initial purchase, the company’s bitcoin portfolio has grown by more than 60%. At today’s market prices, the total value of MicroStrategy’s bitcoin holdings stands at $769.4 million, even though the company spent $475 million on the entire stack.
In an article earlier this week, cryptocurrency exchange Coinbase confirmed that it brokered MicroStrategy’s initial bitcoin investment.
The company’s CEO Michael Saylor in a CNBC interview also shrugged off any possibilities of the company trimming its bitcoin holdings anytime soon. Saylor suggested that such a move would amount to “decapitalizing the company,” and has seemingly backed his words by the latest $50 million purchase.
BTC was trading at a $18905 price at the time of writing, with a $350.9 billion market cap.
