MicroStrategy has added 5,050 Bitcoin to its overall holdings, increasing the total to 114,042 BTC.
MicroStrategy Expands Its Bitcoin Holdings
On Monday, the U.S. business analytics firm revealed that it had added 5,050 Bitcoin to its balance sheet. The new investment comes after the business purchased 3,907 BTC in August.
According to an 8-K form filed with the U.S. Securities and Exchange Commission, MicroStrategy purchased roughly 8,957 Bitcoin for $419.9 million in cash between July 1, 2021, and September 12, 2021, average price of $46,875 per Bitcoin (SEC).
To date, the firm has purchased 114,042 Bitcoin worth $5.1 billion at today’s rates. In addition, it spent $3.16 billion on all of its Bitcoin holdings, with an average price of $27,713 per unit.
When MicroStrategy’s CEO Michael Saylor revealed a strategy to amass alternative assets to replace cash on the balance sheet in July 2020, the company began buying Bitcoin.
MicroStrategy was one of the first publicly listed companies to invest in Bitcoin. As a result, its big Bitcoin stakes piqued the curiosity of institutional and corporate investors in the new asset class. MicroStrategy earned over $500 million through a stock offering after selling $1.5 billion in old banknotes to investors.
MicroStrategy is the largest Bitcoin holder among publicly listed businesses, with a current reserve of $1 billion, followed by Tesla, Galaxy Digital Holdings, Square, Marathon Patent Group, and Coinbase.
MicroStrategy’s MSTR stock has risen 49 percent year to date due to positive conditions in the Bitcoin market.
The stock, however, has recently been on a negative trajectory, coinciding with the Bitcoin market downturn. After reaching a high of about $800 on August 9, the stock is now trading at $605, a more than 24% drop.