Home Bitcoin News MicroStrategy Marks Five Years of Bitcoin Buying With $18M Purchase

MicroStrategy Marks Five Years of Bitcoin Buying With $18M Purchase

MicroStrategy has added another $18M in Bitcoin, marking five years of its crypto strategy, with its holdings now valued over $76B.

MicroStrategy has purchased another 155 Bitcoin for about $18 million. This marks the fifth anniversary of its Bitcoin investment strategy, which has cemented its position as the largest publicly traded corporate holder of the cryptocurrency.

The company disclosed the purchase in a U.S. Securities and Exchange Commission filing on August 11. The coins were bought between August 4 and 10 at an average price of $116,401 each.

Bitcoin started that week at around $114,000 and climbed near its all-time high of $122,000 by Sunday, according to CoinGecko data.

MicroStrategy’s Five-Year Journey With Bitcoin

MicroStrategy started its Bitcoin treasury strategy on August 11, 2020. The first purchase was 21,454 BTC for $250 million, with an average price of about $11,400 per coin.

Since then, Bitcoin’s price has increased by roughly 960 per cent. The company has consistently bought more, regardless of market conditions, and co-founder Michael Saylor has repeatedly said he has no plans to stop.

The latest purchase brings MicroStrategy’s total holdings to 628,946 BTC. The company spent about $46.09 billion buying this amount, at an average price of $73,288 per Bitcoin. 

At current prices near $122,000, the stash is worth more than $76 billion with an unrealised profit of over $30.6 billion.

Smaller Purchase, Bigger Headlines

Even though the $18 million buy is large, it is relatively small compared to MicroStrategy’s history of purchases. For example, in July alone, the company bought 21,021 BTC for about $2.46 billion.

Nic Puckrin, founder of Coin Bureau, noted the size in a comment on social media, in which he indicated that the company might need to raise more cash for larger buys. 

The smallest purchase so far was in March of this year, when MicroStrategy bought 130 BTC for $10.7 million.

Despite the smaller size, the timing of this purchase coinciding with the five-year milestone is why it is so interesting.

MicroStrategy Stock Price Reaction

News of the latest Bitcoin purchase pushed MSTR shares up nearly 3 per cent in pre-market trading to $405.80. The stock has risen more than 36 per cent this year, and is outperforming Bitcoin’s 30 per cent gain over the same period.

Unrealised profits on the company’s Bitcoin holdings, being more than $30 billion, also contributed to the positive market response.

Overall, Saylor has pointed out that the company intends to keep raising funds for more Bitcoin purchases, regardless of the asset’s short-term price movements. He recently predicted that Bitcoin could reach $21 million per coin within the next 21 years.

Bitcoin Price Trends and Market Sentiment

Bitcoin now trades at around $119,473 at the time of writing, which is down from its weekend highs above $122,000. Trading volumes have risen by more than 37 per cent in the past 24 hours, which indicates an increase in market participation.

Analysts are watching for a possible run toward $135,000, based on bullish technical patterns. However, some, like Benjamin Cowen, believe the current rally could be the last before a market peak expected in October.

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