The cloud software company has invested an extra $147M into Bitcoin, adding its holdings to 158245 Bitcoin.
MicroStrategy, the world’s biggest corporate Bitcoin holder, publicized its most recent acquisition of the market’s most prominent cryptocurrency.
MicroStrategy Expands Bitcoin Holding with $147M Acquisition
A Securities and Exchange Commission filing submitted on Monday showed that between August 1 and September 24, the company and its subsidiaries bought an estimated 5445 BTC for nearly $147M. Each coin’s average cost, including expenses and fees, was nearly $27053.
This purchase has resulted in MicroStrategy’s coffers rising to an aggregate of approximately 158245 Bitcoin bought at an average purchase cost of nearly $29582.
The filing shows that the aggregate buying price for MicroStrategy’s Bitcoin Holdings has reached $4.68B.
MicroStrategy Consistent in Bitcoin Accumulation Despite Bear Market Aggravating Loss
MicroStrategy’s continued Bitcoin accumulation highlights the firm’s belief in the asset as a value store and long-term investment. However, the consistent bear market also shows it is considerably at a loss on its historical investments in the initial cryptocurrency.
At the time of writing, Bitcoin was down 1.7% and traded just over $26000. Further, Bitcoin’s fiat value on MicroStrategy’s balance sheet is an estimated $4.1B.
In June this year, the company purchased 12333 Bitcoins for $347M, with an average cost of $29668 for every BTC. MicroStrategy started obtaining cryptocurrency in August 2020, with Michael Saylor, its cofounder, claiming that, at the time, using it as a hedge against inflation was the major goal.
MicroStrategy Considers Bitcoin as Capable of Hedging Against Inflation
Earlier this year, he claimed the firm’s plan is ‘to purchase and keep Bitcoin and also remain transparent, accountable, and consistent during the strategy’s pursuit.’
In the first quarter of 2023, MicroStrategy experienced its initial profitable quarter, majorly linked to a single-time income tax benefit that sustained profitability in the second quarter with a net income of $22.2M. This happened despite an impairment charge on its Bitcoin holdings amounting to $24.1M.
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