- MicroStrategy has increased its Bitcoin holdings for a third time, adding ₿2,754 to its coffers
- The company added the coins at an average cost of $19,427, taking the total to ₿40,824
- MicroStrategy is $305 million up on their three Bitcoin deals
MicroStrategy, the software company that has made headlines in recent months by buying big into Bitcoin, has increased its holding to almost ₿41,000 after spending $50 million on another ₿2,574. CEO Michael Saylor informed Twitter of the purchase on Friday, announcing that the company now holds “approximately 40,824 bitcoins”.
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
MicroStrategy Up $305 Million on Their Bitcoin Buys
The MicroStrategy purchase, which Saylor says was “in accordance with its Treasury Reserve Policy”, represents the third such purchase in two months for the company and reinforces Saylor’s belief in the asset as a hedging strategy. This strategy seems to be paying off, at least in the short term, as the value of the company’s Bitcoin holdings has risen by $305 million whereas if the outlay had been kept in USD it would have reversed by $25 million according to the U.S. Dollar Index.
In a year when Bitcoin has attracted more institutional backers and believers than ever before, few have put their money where their mouth is as much as Saylor. Saylor has the added pressure of the fact that it is not just his own money on the line but over a quarter of MicroStrategy’s balance sheet, with skeptical shareholders to please.
Share Price Up 166% in Four Months
Saylor has turned into something of a Bitcoin hero this year after convincing the MicroStrategy shareholders and board of his plan to invest so much into Bitcoin but it has paid off in more ways that one – not only have they made a huge dollar profit on the Bitcoin itself but the MicroStrategy share price is up 166% since the announcement of the first purchase.
Unless Saylor has a point at which he will not pay more for Bitcoin, we can expect more company purchases in the coming months as the company aims to tie up a quarter of its balance sheet in Bitcoin.
