MicroStrategy Invests $347M And Doubles Its Bet On Bitcoin
MicroStrategy just doubled its Bitcoin investment. The financial intelligence firm announced today that it bought another $347 in Bitcoin, bringing the total to 152,333 BTC. Lots of bitcoins in wallet.
Microstrategy has long been a supporter of Bitcoin, with former CEO Michael Saylor referring to the cryptocurrency as a digital synthetic successor to gold. He also talked about the power of Bitcoin as an inflation rate, like ordinary gold. The company started buying Bitcoin in August 2020 worth more than $250 million and has not stopped since. According to a Twitter message from Michael Saylor, this new purchase of 12,333 BTC was purchased at an average price of $28,136 per bitcoin between April 29, 2023 and June 27, 2023. This brings the total purchase to around $4.52 billion at an average price of $29,668 per bitcoin, including fees and expenses. MicroStrategy, along with its subsidiaries, currently holds a total of 152,333 bitcoins. Always welcome
MicroStrategy isn't the only company getting into bitcoin investing, as many companies and hedge funds have allocated part of their portfolios to bitcoin over the years. Companies like Tesla and Galaxy Digital Holdings have also bought hundreds of millions of dollars worth of Bitcoin. It's been a strong month for the world's largest cryptocurrency, with Bitcoin topping $30,000 this month. Now the company has a large bag of Bitcoins to add to its holdings.
The price of Bitcoin dropped more than 70.1% from its all-time high of $69,044.77 set on November 10, 2021. According to Michael Saylor, Bitcoin is up 159% since MicroStrategy launched its strategy in August 2020. Bitcoin is currently trading in the 30,000 area over the past week. However, since the announcement, the cryptocurrency is down 1.45% on the day. The previous announcement of the acquisition of MicroStrategy has caused the price of Bitcoin to decrease slightly.
Although the risk and volatility are constant, the growing interest from institutional investors is a puzzle for Bitcoin, especially in the current crypto bear market. Although this level of investment in volatile assets is risky, if Bitcoin gains popularity and reaches the estimate of $100,000 per coin or more, MicroStrategy will appear as visionaries.