MicroStrategy has purchased another 1,434 Bitcoin.
This was revealed by founder and CEO Michael Saylor on Twitter, adding that the company now owns about 122,478 BTC acquired over time with a total investment of $3.66 billion, at an average price of $29,861.
MicroStrategy has purchased an additional 1,434 bitcoins for ~$82.4 million in cash at an average price of ~$57,477 per #bitcoin. As of 12/9/21 we #hodl ~122,478 bitcoins acquired for ~$3.66 billion at an average price of ~$29,861 per bitcoin. $MSTRhttps://t.co/Xke8QhoYpy
— Michael Saylor⚡️ (@saylor) December 9, 2021
Summary
Microstrategy’s latest Bitcoin purchase
About $82.4 million was allocated for this latest investment, and the 1,434 BTC were purchased at an average price of $57,477.
This is significantly higher than the current price of around $48,000, which reveals that this latest purchase was made in the previous days.
The document submitted to the SEC shows that they were purchased between 29 November and 8 December, i.e. during a period when the price fluctuated between $42,000 and $59,000.
In fact, it can be assumed that they were made mainly after the temporary rise on 29 November, when the price rose from $54,000 to $59,000 in little more than 24 hours.
The average price of these latest purchases is much higher than the overall price of just under $30,000, which suggests that the company expects the price of BTC to rise.
Michael Saylor’s strategy
However, MicroStrategy is not buying Bitcoin to resell them as quickly as possible at a higher price, but to hold them indefinitely. So it’s not at all the case that they think the price of BTC will rise again anytime soon, as their time horizon regarding this investment is long term.
The company began buying Bitcoin in August last year, when the price was hovering around $11,000. In fact, its 122,478 BTC are currently worth a total of almost $5.9 billion, or 60% more than the $3.66 billion it invested.
In other words, the company has now earned $2.2 billion in less than a year and a half by investing $3.66 billion to buy Bitcoin.
A winning move
It is worth noting that MicroStrategy’s stock price was $121 before they announced they were buying Bitcoin in August of last year, while it is now $592. In that time, the stock has gained 390%, far more than, for example, the performance of the Nasdaq 100 Index which has stopped at 45% over the same period.
Although Bitcoin’s value has been on a downward spiral in recent days, MicroStrategy’s choice still looks more than successful today, provided that BTC doesn’t fall much further.
