Although Bitcoin is flirting with its historical level, MicroStrategy is betting on even more growth in cryptocurrencies. The multinational company is investing an additional $50 million in cash in Bitcoin.
MicroStrategy and Bitcoin are probably just at the beginning of their prolific relationship. This is confirmed month after month. The business intelligence software company is further increasing its exposure to cryptocurrencies.
In a December 4 tweet, its CEO announced that the company now holds 2574 additional bitcoins. MicroStrategy is dedicating $50 million in cash to acquire even more Bitcoin.
“MicroStrategy purchased approximately 2,574 Bitcoins for $50.0 million in cash in accordance with its cash reserve policy at an average price of approximately $19,427 per Bitcoin. We now own approximately 40,824 Bitcoins,” said Michael Saylor.
Despite the current price of Bitcoin, the publisher is choosing to continue its investments. It is therefore betting on the asset’s growth potential, which is close to its historical high. Like other investors, its managers believe that institutional adoption will continue to drive its value.
The company’s August debut in Bitcoin was indeed just the beginning. MicroStrategy initially acquired 21,454 BTC for an average price of $11,700.
This represented an initial investment of $250 million. But by September, the firm was still investing $175 million in Bitcoin. On this occasion, it offered 16,796 BTC at an average of 10,700 dollars.
Today, MicroStrategy’s 40,824 BTCs are equivalent to approximately $765 million. The return on investment is unmatched by any other vendor with an initial investment of $475 million. It should be noted that Michael Saylor himself holds more than 17,000 BTCs out of his personal capital.
MicroStrategy is currently the best-endowed publicly traded company in terms of cryptocurrency according to Bitcoin Treasuries. It is ahead of Galaxy Digital Holdings, from investor Mike Novogratz with 16,651 BTC. Square, by Jack Dorsey, ranks further ahead with 4,709 BTC.
Unlike these two players, MicroStrategy does not offer financial and crypto services. That could change, however. The firm is looking to recruit blockchain experts to launch data-based Bitcoin services.