Software firm MicroStrategy made waves within the crypto market last month when news broke regarding their acquisition of $250 million worth of Bitcoin.
The company is now doubling down on their attempt to use BTC as a reserve asset, adding another $175m to their holdings.
The company announced their plan to add to their holdings earlier today, with the founder explaining that they purchased 16,796 Bitcoin at an aggregated price of $175 million.
MicroStrategy is already listed on Nasdaq and is one of the only publicly listed companies in the U.S. to adopt Bitcoin as a reserve asset.
This August, the company announced in a blog post that they are switching from the US Dollar to Bitcoin as their reserve treasury asset.
At the time of the announcement, the MicroStrategy's CEO Michael Saylor explained that this unorthodox decision reflects the company's belief in BTC as a more dependable safe-haven asset than USD. "This investment reflects our belief that Bitcoin, as the world's most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash."
Saylor specifically pointed to Bitcoin's unique properties as a fully digital, decentralized, and scarce asset as another reason why MicroStrategy is so bullish on the digital asset.
"Since its inception over a decade ago, Bitcoin has emerged as a significant addition to the global financial system, with characteristics that are useful to both individuals and institutions. MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash."
Despite already having massive sums of capital allocated to the benchmark cryptocurrency, the company's CEO announced in a tweet from earlier today that they bought an additional 16,796 BTC on September 14th. "On September 14, 2020, MicroStrategy completed its acquisition of 16,796 additional bitcoins at an aggregate purchase price of $175 million. To date, we have purchased a total of 38,250 bitcoins at an aggregate purchase price of $425 million, inclusive of fees and expenses."
Based on the numbers he mentioned above, the company's average buy-in price for BTC sits at roughly $11,100, putting them at a slight loss based on Bitcoin's current price of $10,700.
This publicly listed company just spent another $175 million on Bitcoin
Published on Sep 16, 2020
by Cryptoslate | Published on Coinage
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