MicroStrategy is one of the largest corporations that publicly hold Bitcoin. The firm accumulated BTC buying the dips.
MicroStrategy, the data analytics firm helmed by billionaire cryptocurrency bull Michael Saylor, announced another big investment in bitcoin on Monday morning, doubling down on its staggering commitment to the world’s largest cryptocurrency as the nascent market reels from a nearly 15% correction this month—and the threat of a new coronavirus variant.
The company bought these bitcoins at an average purchase price of $59,187 per coin. It purchased these bitcoins as part of its fourth-quarter purchase, i.e., during the period between October 1 and November 29.
The purchase brings MicroStrategy’s total Bitcoin holdings to 121,044 on expenditures of $3.57 billion. Based on the average purchase price of its portfolio, approximately $29,534 per Bitcoin, the company has unrealized gains of nearly $3.4 billion on its cryptocurrency holdings.
In its most recent earnings report in September, MicroStrategy booked impairment losses of $754.7 million on its bitcoin holdings. That figure may well have changed given the cryptocurrency’s subsequent rally. MicroStrategy’s stock was up 2.83% at $681.73 in Monday morning trading, and has risen about 75% this year so far.
In addition, the Microstrategy executive said he is not at all troubled by regulation that is being discussed in Washington, noting that it will affect security tokens, decentralized finance (DeFi) exchanges, crypto exchanges, and other use cases of cryptocurrency that are not bitcoin. In his opinion, “bitcoin is unstoppable as digital property.”
On Friday, Saylor tweeted, “Bitcoin offers better inflation protection than gold and is growing faster than big tech.” He believes that BTC “is the only property you can truly own, as well as the first technology capable of granting property rights to everyone on earth.” He emphasized, “In time, we will come to understand that it is concentrated energy in digital form and critical to the progression of our civilization.”
Since Saylor pledged not to stop acquiring bitcoin on his company’s Q2 investor call in September, MicroStrategy has purchased nearly 20,000 BTC. Tesla is the second-biggest corporate holder of bitcoin, with a stack of around 43,200 BTC.
