MicroStrategy is proving itself to be the major bitcoin hub of the year. As an institutional investor, the company has been rather open about its love and respect for bitcoin, which it’s now taking to a whole new level thanks to its recent purchase of additional bitcoin units above the $19,000 price.
MicroStrategy Shows the World How Much It Loves BTC
In the past, MicroStrategy has purchased bitcoin on two separate occasions. Both occurred in 2020. The first time was in August, when bitcoin was hovering around the mid-$11,000 range. The currency shot up by more than $300 within a week or so of the purchase, which at first, may not seem like much.
However, the purchase itself was significant considering the company had bought more than $250 million worth of the world’s number one digital currency by market cap. Thus, that $250 million shot up and brought the company’s net worth up by more than $100 million. Therefore, the purchase of bitcoin proved to be paying off already for the institutional player.
However, MicroStrategy proved that it wasn’t ready to quit, and despite a heavy drop by more than $1,000 a month later, September saw MicroStrategy buy another $175 million in BTC units, thereby bringing its total bitcoin total to more than $400 million, roughly the same amount lost by the Mt. Gox exchange in 2014.
This proved to be a major gamble considering September was showing relatively bearish behavior for the asset, but things eventually worked out as at the time of writing, bitcoin is trading for well over $19,000, meaning that MicroStrategy has made about $9,000 on each unit of bitcoin it purchased three months ago.
No doubt the firm has made a lot of money with its bitcoin-based decisions, and now it has purchased about $50 million in new BTC, meaning it now possesses close to half a billion in bitcoin. It’s one of the biggest bitcoin holders out there, and chances are it’s not looking to stop anytime soon.
After all, the CEO of the company Michael Saylor has repeatedly come out to tell people just how stable bitcoin is, and that he trusts it far more than he does standard cash and gold.
Even More BTC in Its Stash
Also, considering how high bitcoin is at press time, the company is likely betting on the idea that the currency is going to spike heavily again in the coming months. Michael Saylor released the news in a tweet, explaining:
MicroStrategy has purchased approximately 2,574 bitcoins for $50 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.