MicroStrategy Deepens Its Crypto Bet With Another $240 Million Spent On Bitcoin
September 14 2021 - 6:00PM
NEWSBTC
MicroStrategy has stuck to its bitcoin strategy through thick and
thin. At this point, every dip seems to be a buying opportunity for
the firm, which has completely thrown its weight behind bitcoin.
Its CEO Michael Saylor is a maximalist that believes the future is
bitcoin. MicroStrategy has been upping its bitcoin investment
through the year, garnering a stash of over 100K bitcoins. Even
now, the firm continues to straighten its position in the digital
asset. CEO Michael Saylor announced that the firm had bought
another 5,050 bitcoins, bringing the total assets held by the
company to approximately 114,042 bitcoins. The 5,050 bitcoins were
bought for around $242 million, with an average price of $48,099
per BTC. This brings the total amount of the digital asset held by
the firm to $3.6 billion. All are gotten at an average price of
$27,713 per coin. MicroStrategy has purchased an additional 5,050
bitcoins for ~$242.9 million in cash at an average price of
~$48,099 per #bitcoin. As of 9/12/21 we #hodl ~114,042 bitcoins
acquired for ~$3.16 billion at an average price of ~$27,713 per
bitcoin. $MSTRhttps://t.co/2ESbTy6ad7 — Michael Saylor⚡️
(@michael_saylor) September 13, 2021 Related Reading | Cathie
Wood Reiterates $500K Bitcoin Call, Reveals Ethereum Rebalancing
MicroStrategy has refused to sell off its crypto holdings at any
point. Crashes seem to not phase the firm as they invest even more
into the asset with every price dip. This latest acquisition goes
to show their commitment to the long-term growth of bitcoin. Saylor
also has both personal and institutional interest in the asset and
is one of the most vocal corporate supporters of the digital
currency. MicroStrategy Making All The Right Moves MicroStrategy
has now seemingly abandoned traditional assets in favor of
investing in bitcoin. A report from Bitcoinist shows where the firm
would be profit-wise had it opted to invest in one of the most
well-known traditional investments, gold, instead of investing in
bitcoin. Since bitcoin has consistently outperformed gold by at
least 200% year over year for the past couple of years,
MicroStrategy’s investment would have way less in the way of
return. Or as the report shows, the firm would be recording losses
at this point. Related Reading | New To Bitcoin? Learn To
Trade Crypto With The NewsBTC Trading Course Comparisons between
the digital asset and gold from March to June 2020, the time period
when the firm first invested in bitcoin, shows what the current
value of the investment would be. MicroStrategy had put about $2
billion into its bitcoin investment, which presently has
appreciated over 376% in the span of a year. On the other hand, had
the firm put this $2 billion into a traditional asset like gold, it
would have lost 80% of its total value. This is because gold has
given negative returns on investment in the past year. Thus any
investment in the asset would result in a loss. The success of
MicroStrategy’s bitcoin investment has also bolstered the company’s
standing profit-wise. Not only is its investment outperforming
gold, but the company itself has also outperformed gold in the
market. BTC price above $46,000 | Source: BTCUSD on TradingView.com
MicroStrategy’s shares have appreciated 428% in the year following
the launch of its bitcoin fund. Outperforming both the NASDAQ and
the S&P500 combined. MicroStrategy is currently the leading
corporate investor in bitcoin. Featured image from CoinQuora, chart
from TradingView.com
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