Publicly-traded business intelligence and software company MicroStrategy announced today that it had purchased more bitcoins, which saw the value of its total holding of the asset spiked by more than $1 billion.
According to an announcement today, MicroStrategy stated that it recently acquired approximately 29,646 bitcoins valued at $650 million at an average price of $21,925, bringing its total holding of the asset to 70,470 BTC.
MicroStrategy stated that all 70,470 bitcoins were acquired at an aggregate price of $1.125 billion, with each coin procured at an aggregate cost of $15,964.
Michael J. Saylor, CEO of MicroStrategy, who shared the news on Twitter, said the recent acquisition is in line with its treasury reserve policy.
Despite claims by traditional financial institutions that bitcoin is not a better store of value asset, Saylor noted that MicroStrategy is confident that the cryptocurrency is a “dependable store of value.”
Commenting on the development, Phong Le, President & CFO at MicroStrategy, said:
The company continues to believe bitcoin will provide the opportunity for better returns and preserve the value of our capital over time compared to holding cash.
The crypto world was ecstatic after MicroStrategy announced its plans to convert most of its cash holdings into bitcoin in August.
At first, crypto enthusiasts thought the firm’s venture into cryptocurrency would be a one-time thing, which would come to a halt after the first purchase of 21,454 bitcoins was made.
However, MicroStrategy grew more hungry for the largest cryptocurrency by market capitalization, as the company went on to purchase substantial amounts of bitcoins on three different occasions.
Earlier this month, MicroStrategy announced that it would sell up to $650 million convertible senior notes to raise funds to purchase more BTC.
Since MicroStrategy pledged its confidence in Bitcoin by acquiring a large amount of the asset, several institutional investors have joined the bitcoin bandwagon, causing its price to skyrocket.
It is no longer news that institutional investors fueled the current bitcoin rally. This development is evident during the time MicroStrategy announced its Bitcoin plans.
As reported, popular firms have since followed MicroStrategy to enter into the crypto world, including PayPal, among others.
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