Despite the unstable market situation, MicroStrategy announced the purchase of Bitcoin for $ 15 million. Thus, this time the company acquired 271 BTC at an average rate of $ 55.3 thousand.
In August 2020, MicroStrategy was the first public company to convert a portion of its equity capital of $ 250 million into the first cryptocurrency. Later, the firm’s board of directors approved a policy of increasing investment in Bitcoin at the expense of cash reserves.
In December, MicroStrategy used debt financing to buy cryptocurrency for the first time. The company placed $ 650 million in convertible bonds.
In February 2021, the software provider held a new issue of debt securities for more than $ 1 billion and again invested the funds raised in Bitcoin.
In March, the firm continued to transfer free funds into the first cryptocurrency. Investing first $ 15 million, then $ 10 million, then again $ 15 million. For the same amount, MicroStrategy bought Bitcoin in April, and the company promised to continue investing.
To date, the software manufacturer controls about 91.85 thousand Bitcoins for a total of $ 4.6 billion.
The head of MicroStrategy, Michael Saylor, said that the total average purchase price of a cryptocurrency is about $ 24.4 thousand per Bitcoin. The company’s paper profit from investment in a digital asset reached $ 2.4 billion.
According to Bitcoin Treasuries, the share of digital asset reserves in the company’s market capitalization is 93%. The software provider’s stock quotes have already shown a correlation with the Bitcoin price.
In addition to owning 0.437% of the total Bitcoin in circulation, the software giant and its CEO have launched several initiatives to support BTC in recent months.
MicroStrategy is the largest cryptocurrency holder
MicroStrategy is the largest cryptocurrency holder among public companies, according to Bitcoin Treasuries. It hosted a special conference earlier this year. To educate senior executives of large companies on the merits of investing in Bitcoin. Shortly thereafter, Saylor released a comprehensive course for retail investors. In addition, the company has made significant changes to its internal procedures as it began paying its non-employee board members Bitcoin instead of fiat currencies.
Tesla is on the second line, which owns 43.2 thousand BTC for a total of $ 2.1 billion.
The head of the automaker, Elon Musk, announced that the company is temporarily refusing to sell its products for Bitcoin. Due to the non-environmentally friendly method of mining. Later, the billionaire called the amount of electricity consumed by the first cryptocurrency insane.
While the MicroStrategy acquisition coincided with a Bitcoin price correction triggered by Elon Musk’s sudden decision to stop accepting BTC payments for Tesla vehicles, the business intelligence company is not timing its time to market. Back in February, Saylor said the company had no intention of slowing down the pace of BTC purchases.
MicroStrategy acquires Bitcoin on the basis that the digital asset is a reliable store of value in the face of systemic dollar depreciation. The company even issued promissory notes to expand its crypto portfolio.