MicroStrategy Acquires Additional 2,395 BTC For $43M

After going on a Bitcoin (BTC) purchase spree this year, American business software vendor MicroStrategy has added a massive amount of Bitcoin to its portfolio through its subsidiary MacroStrategy.

Instead of regarding the recent plunge in the price of BTC pegged around $16,000 as a terrible situation hindering investment, MicroStrategy and other entities considering the development of their reserves are leveraging the low price to amass more digital assets.

In the last two months, MicroStrategy has purchased 2,395 BTC worth around $43 million. Michael Saylor, the founder of the business intelligence firm confirmed the acquisitions via a Twitter post. According to Saylor, MicroStrategy had 132,500 BTC in its holdings as of 27th December 2022. 

MicroStrategy Increases BTC Holding to 132,500 BTC

MicroStrategy is known to be one of the largest holders of Bitcoin globally since it engaged in the new venture.

This year has been a roller coaster ride for many firms in the crypto industry, however, MicroStrategy began with the purchase of 660 Bitcoin for $25 million in cash between December 30, 2021, and January 31, 2022. With this purchase, its BTC holding increased to about 125,051 BTC.

At the time, the average BTC buying price was $37,865 per BTC, including fees and other costs.

In September amid the crypto winter contributed by the collapse of TerraLUNA, MicroStrategy acquired 301 BTC for $6 million, at an average price of $19,851 per bitcoin, a far cry from its worth in January. The Bitcoin market tanked further with the implosion of Bahamian-headquartered crypto exchange FTX.

In total, all of MicroStrategy’s BTC holdings 132,500 were acquired for $4.03 billion at an average price of $30,397 per coin.

While it seems like a miscalculated idea to be building its portfolio with Bitcoin which is oftentimes regarded as a speculative asset, MicroStrategy has no immediate plans to sell off its BTC. It is rather a long-term-oriented business for the American technology organization.

However, the company sold 704 BTC last week for $11.8 million citing that a loss on the transaction would offset its previous capital gains. Two days later, MicroStrategy purchased 810 more BTC.