MicroStrategy has bought an additional 29,646 bitcoin at an average price of $21,925.
This was revealed on Twitter by the company’s CEO, Michael Saylor, who added that overall they bought 70,470 BTC at an average price of $15,964 throughout the months, investing a total of $1.125 billion.
MicroStrategy has purchased an additional 29,646 bitcoins for $650 million at an average price of $21,925 per #bitcoin and now #hodl an aggregate of 70,470 bitcoins purchased for $1.125 billion at an average price of $15,964 per bitcoin.https://t.co/j6wVLXIzoa
— Michael Saylor (@michael_saylor) December 21, 2020
The company, which is listed on the Nasdaq under the symbol MSTR, is the largest independent business intelligence firm listed on the stock exchange, and its CEO is now a point of reference for the global bitcoin community.
“The Company continues to operate in accordance with its Treasury Reserve Policy and currently holds approximately 70,470 bitcoins. The acquisition of additional bitcoins announced today reaffirms our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value. We believe the proactive management of our balance sheet, combined with the improved revenue and profitability performance of the Company, have been significant factors in the recent appreciation in our stock price”.
The relationship between MicroStrategy and Bitcoin
MicroStrategy began purchasing BTC in August, after deciding to adopt it as its primary store of value.
After using excess cash for these purchases, it began raising funds by selling convertible senior notes in order to buy more BTC, so much so that Citigroup ended up downgrading its shares.
However, the value of the stock is still very high, as it is still more than double what it was in July, when it was worth $120.
The first rise came in August, when it climbed to $140, but it was in November that it really took off, going from $160 to $340 in just one month.
A 112% increase in value in one month is a rare exception for a stock that has been listed for over 20 years.
President and CFO of MicroStrategy Incorporated, Phong Le, said:
“The Company continues to believe bitcoin will provide the opportunity for better returns and preserve the value of our capital over time compared to holding cash. We also remain dedicated to our customers and our goal of operating a growing profitable business intelligence company. As we work to grow revenue through HyperIntelligence®, Cloud Intelligence™ and Embedded Intelligence™ offerings, the Company expects to continue to generate positive operating income and free cash flow and will continue to evaluate the use of excess cash in accordance with our capital allocation strategy and Treasury Reserve Policy”.