15.1 C
New York

MicroStrategy expands Bitcoin portfolio with $593M purchase

Published:

MicroStrategy, a business intelligence firm, has made a significant move in the cryptocurrency market by acquiring an additional 16,130 Bitcoins for approximately $593.3 million. This brings the company’s total Bitcoin holdings to a staggering 174,530, purchased at an average price of just over $30,000 per Bitcoin, as declared by the company’s founder and chairman, Michael Saylor.

Saylor revealed that the company paid an average of $36,785 per Bitcoin in this latest transaction. This strategic investment has increased the value of MicroStrategy’s Bitcoin holdings to over 70% of its total stock market valuation, which currently stands at $7.3 billion. This move reflects the company’s confidence in Bitcoin as a long-term investment.

The company’s journey with Bitcoin started in August 2020, positioning it as one of the early institutional adopters of the cryptocurrency. Since its initial purchase, the company has consistently increased its Bitcoin reserves, despite the digital asset’s notorious price volatility.

MicroStrategy’s Bitcoin treasury is now more than 12 times larger than that of its closest institutional peer, Bitcoin miner Marathon Digital, which currently possesses 13,726 Bitcoins valued at $517 million at current market prices.

Bitcoin as a Reserve Asset

Saylor has been vocal about his belief in Bitcoin, viewing it as a reserve asset that can protect the enterprise software company from inflationary pressures. This aligns with the views of several other investors who see cryptocurrencies, particularly Bitcoin, as a hedge against inflation and economic uncertainty.

The company’s aggressive Bitcoin investment has positioned it as a major player in the cryptocurrency space and reflects a broader trend of institutional adoption of digital assets. As more companies and financial institutions explore cryptocurrencies as a viable asset class, MicroStrategy’s moves could indicate a larger shift in corporate investment strategies.

At the time of writing, Bitcoin is trading at $37,650, continuing to attract attention from investors globally, with companies like MicroStrategy leading the charge in institutional adoption.

Related articles

Recent articles