Just a few days after the publicly traded business intelligence and software company, MicroStrategy revealed its plans to raise money for its bitcoin purchase spree, the company has completed a new bitcoin purchase.
MicroStrategy announced today that it has finalized the purchase of approximately 13,005 bitcoins for $489 million in cash.
The bitcoins were bought at an average price of $37,617 per unit of the coin, including transaction fees and every other expense.
MicroStrategy currently holds a total of 105,085 bitcoins in its portfolio, which it had acquired at a price of approximately $2.741 billion and an average purchase price of approximately $26,080 per unit of bitcoin, including all transaction fees and other related expenses.
Buying the Dip
This recent bitcoin purchase came shortly after prices of several digital currencies tumbled. With an increasing level of FUD within the crypto market, thousands of long positions were liquidated in a few short hours.
Several top coins like bitcoin and Ethereum dropped by 5% and 10%, respectively, within 24 hours. The price drop also affected thousands of other cryptocurrencies currently trading on different exchanges.
Bitcoin’s price dropped from $41,000 to below $38,000 today.
MicroStrategy has long employed the Sat-Stacking policy that allows it to accumulate bitcoins by buying in small quantities at strategic durations.
With this method, the company has been able to build its bitcoin portfolio over time while reducing the average purchase price for each unit of the cryptocurrency.
No Sign of Slowing Down
While some large institutional investors enter the cryptocurrency market with a one-time large bitcoin purchase, MicroStrategy has vowed to continue accumulating bitcoin for as long as possible.
Believing in the digital currency’s potential, the company made bitcoin its primary treasury reserve asset and has not regretted its decision.
A few days ago, MicroStrategy offered to issue over $400 million convertible senior notes to its investors to raise money for this latest bitcoin purchase.
