The official announcement was published, as usual, by the CEO of the company, Michael Saylor: in January MicroStrategy bought a further 660 Bitcoin at an average price of about $37,000, investing a total of $25 million.
MicroStrategy has purchased an additional 660 bitcoins for ~$25.0 million in cash at an average price of ~$37,865 per #bitcoin. As of 1/31/22 we #hodl ~125,051 bitcoins acquired for ~$3.78 billion at an average price of ~$30,200 per bitcoin. $MSTRhttps://t.co/bF6VImC0Qy
— Michael Saylor⚡️ (@saylor) February 1, 2022
Summary
MicroStrategy has bought 125,000 Bitcoin
Now the company owns a total of 125,051 BTC, purchased at an average price of $30,200, with a total investment of $3.78 billion. The current market value of these Bitcoin exceeds $4.78 billion.
The company, which is listed on Nasdaq under the ticker MSTR, sent regular notices to the SEC of this additional investment.
By the end of November, they had purchased 7,002 BTC at an average price above $59,000, and also in December, they had purchased another 1,434 BTC at an average price of around $57,400.
The January purchase was made at an average price far below those of recent months, although higher than the overall average price. It is worth mentioning that MicroStrategy started buying BTC as early as August 2020, at a price of about $12,000.
Moreover, the overall average price of around $30,000 roughly corresponds also to the minimum price of 2021, and so far in this early 2022, the price has still never fallen to those levels, although it has come close.
Microstrategy’s strategy
The company’s strategy though is not to buy to resell at a higher price (i.e. speculate), but to buy Bitcoin to have them as a store of value. In fact, they have explicitly stated that they do not intend to sell them, and indeed do not intend to stop buying them.
Saylor himself recently stated during an episode of the UpOnly podcast that he considers Bitcoin to be a “property”, outside the control of a company or group of individuals, adding that it is quite difficult to create a property.
Hence, he does not believe that BTC should be considered a speculative asset, or a security to invest in, but something to buy to hold in a portfolio, in some ways more like real estate than a stock. This view well explains the company’s strategy of not selling the BTC purchased, but only keeping it as a reserve asset.
