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MicroStrategy purchased an additional $15 million worth of Bitcoin on April 5, 2021. The firm now has 91,579 Bitcoin, with a total value of $5.29 billion.
Michael Saylor, the founder and the CEO of MicroStrategy, has announced that the company has purchased an additional $15 million worth of Bitcoin. This recent purchase comes just three weeks after the company bought another batch of Bitcoin. According to the tweet posted by Michael Saylor, the company has purchased an additional 253 Bitcoin. This purchase was made at an average price of $59,339 per Bitcoin.
MicroStrategy has purchased an additional ~253 bitcoins for $15.0 million in cash at an average price of ~$59,339 per #bitcoin. As of 4/5/2021, we #hodl ~91,579 bitcoins acquired for ~$2.226 billion at an average price of ~$24,311 per bitcoin. $MSTRhttps://t.co/OMQMhA85xw
— Michael Saylor (@michael_saylor) April 5, 2021
MicroStrategy made history as the first company to make a direct purchase of Bitcoin. The company’s last Bitcoin investment was on March 12, three weeks before their recent purchase. Currently, this company has a total Bitcoin holding of more than 5.29 billion, which may go higher, depending on the trend on Bitcoin prices.
MicroStrategy’s Strategy for Bitcoin purchases
Bitcoin prices are at a high cost of over $59,339. This new price is around $1600 lower than the all-time high price of the currency. Michael Saylor is taking advantage of the soaring Bitcoin prices to tap into the great returns expected in this market because of the bullish trend. MicroStrategy purchased its first Bitcoin in August 2021. Since then, the CEO has been persistent in ensuring that he owns a significant share in the world’s most common cryptocurrency.
When Michael Saylor made his first Bitcoin purchase in August last year, it depleted the company’s cash reserves. This deletion happened after purchasing Bitcoin that was worth $550 million. However, after the cash reserve was exhausted, he gained a corporate bond of more than $650 million, and he used the bond to purchase more Bitcoin. In February 2021, MicroStrategy raised a Bitcoin bond worth $1.05 billion to buy more Bitcoin.
MicroStrategy is currently experiencing low interest rates, but Michael Saylor stated that he would instead issue debt to purchase Bitcoin. Michael Saylor also has a personal Bitcoin holding of over $1 billion.
In his announcement, Michael Saylor stated that MicroStrategy was still developing software business analytics, purchasing and storing Bitcoin. By having a hold of more than 90000 Bitcoin, the company was confident that they could change the around Bitcoin and prove that corporates could use it as a store of value. The CEO also stated that the company would continue purchasing more Bitcoin.