Nasdaq-listed MicroStrategy Inc has made another move to shore up its Bitcoin portfolio by purchasing an additional 2574 BTC as announced by Michael Saylor, the company’s Chief Executive Officer.
According to an update posted on his Twitter handle, Saylor revealed that;
“MicroStrategy has purchased approximately 2,574 bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $19,427 per bitcoin.”
According to the SEC filing detailing the purchase and as shared by the CEO, the company “now hold approximately 40,824 bitcoins,” which it purchased at “an aggregate purchase price of $475.0 million, inclusive of fees and expenses.”
Since MicroStrategy announced its first Bitcoin purchase back in August, the company has not slowed down in shoring up its Bitcoin reserves. MicroStrategy’s bullish nature on Bitcoin is one of the most renowned among Wall Street firms who have taken a position with Bitcoin either as a hedge against inflation or as a store of value for increased returns.
MicroStrategy’s Bitcoin investment drive has not been impacted by the market price of the coin. While the company purchased its first Bitcoin at an average price of $9,882 per BTC, it made its recent purchase despite the price being $19,427.
While other publicly listed companies including Square Inc have also taken up a position with Bitcoin, MicroStrategy’s belief with its new capital allocation investment strategy is that Bitcoin has the inherent capabilities to maximize profit for the company’s shareholders in the long-term.
“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. 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,” said Saylor in a statement
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