MicroStrategy purchases another 301 BTC units for $6M

MicroStrategy, the company that holds more Bitcoin units than any corporation, has followed through with its promise to make another purchase of Bitcoin earlier today.

The company purchased 301 coins at an average price of less than $20,000 per, bringing the total amount of their hoard up to 130,000 units.

Michael Saylor, the founder and executive chairman of MicroStrategy, made the announcement of the most recent Bitcoin purchase on Twitter today.

MicroStrategy has purchased an additional 301 bitcoins for ~$6.0 million at an average price of ~$19,851 per #bitcoin. As of 9/19/22 @MicroStrategy holds ~130,000 bitcoins acquired for ~$3.98 billion at an average price of ~$30,639 per bitcoin.https://t.co/5kYW98ij4I

— Michael Saylor⚡️ (@saylor) September 20, 2022

The company purchased 301 coins for $6 million at an average cost of $19,851 per bitcoin, bringing its total holdings to exactly 130,000 BTC. Thus, the business intelligence software, which is listed on Nasdaq, confirmed its position as the largest corporate holder of bitcoin.

MicroStrategy is not selling its BTC holdings despite the loss

It is important to note, however, that MicroStrategy is currently sitting on a significant unrealized loss on its Bitcoin assets. This is due to the fact that the company paid roughly $4 billion to accumulate its stash at an average price of just over $30,000 per Bitcoin.

At the current price of Bitcoin, which is about $19,000, the value of the company’s investment is $2.5 billion, which implies that the company faces a potential loss of $1.5 billion.

Although the advocate of “buy the dip” does not intend to engage in regular trading or enter into a derivative contract with its Bitcoin holdings, it is possible that some of its Bitcoin units will be sold in order to generate the cash that will be required for “treasury management and other general corporate purposes.”

Even though Saylor stepped down from his role as CEO of the company, MicroStrategy has continued to amass more BTC and even has plans to collect further funds in order to accomplish this goal. In accordance to Form 8-K filing with the SEC, the NASDAQ-traded company will sell MSTR shares with a combined market value of $500 million to Cowen & Co. and BTIG, both of which are investment banks that concentrate on crypto-related stocks.