The software company, MicroStrategy, acquired more Bitcoins in the last quarter of the year. Michael Saylor said this on Thursday. The Nasdaq-listed company purchased Bitcoin in September, November, and December. MicroStrategy had purchased 7002 bitcoins in November. This month, the company added 1,434 bitcoins to its crypto assets.
In September, MicroStrategy purchased another batch of Bitcoins, 5050 of them. At the time, the total Bitcoin holdings of the company were 114042, which cost it $3.16 billion. They spent $27,713 per Bitcoin. Back in July, MicroStrategy bought 8,957 bitcoins. They had purchased 3,907 Bitcoins by August, paying $45,294 for each coin.
Monthly Bitcoin Investment And Purchase
The founder mentioned that the recent purchase cost his company $82.4 million, with an average price of $57,477 spent to purchase a Bitcoin. The software company now has 122478 Bitcoins, which cost them $3.66 billion. As of press time, the current value of Bitcoin is $48736.87, equivalent to $6 billion in MicroStrategy’s holdings. This company holds the highest Bitcoin assets on its balance sheet. The CEO believes that such an acquisition will attract more institutional investors to purchase Bitcoin. This is because ETFs linked to Bitcoin will soon become a criterion for institutional investors looking to invest in digital assets.
The CEO believes that Bitcoin has a long-term investment value. In 2020, he tweeted that he owned 17,732 Bitcoins, which he bought on average for $9,882. After that, he advised the MicroStrategy board to consider purchasing Bitcoin. He expressed his enthusiasm for Bitcoin investment, saying, “You do not sell your Bitcoin.”
Diversification Into Bitcoin
This is a bold move from the company as it aspires to acquire more bitcoin for diversification. Over the last few months, the acquisition of digital assets directly impacted the company’s shares. In addition, the company is moving into business intelligence and needs to put its name out there. Apart from using their massive Bitcoin holdings to invest in other businesses, investors are indirectly exposing their investment to digital assets via MicroStrategy, according to a report from coindesk. This could explain the motive behind the monthly acquisition of Bitcoin by the software company.
Recent Bitcoin Pullback
However, Bitcoin and other cryptocurrencies had taken a hit. The price of Bitcoin has pulled back to a ridiculous $48,000 after traders believe it would enter the $50000 support level. But it was not going to happen. The downturn that Bitcoin experienced resulted from Gary Gensler, the SEC Chairman, about regulating the digital asset. Another was a clampdown on Bitcoin miners in China, which reduced the mining hash rate of Bitcoin. In addition, the lingering uncertainty of the Omicron variant added to market pessimism. Lastly, the infrastructure bill that President Joe Biden signed back in November was presumed to have tax conditions for investors in digital assets.
Amidst the bearish lows of the market, Michael Saylor thinks that Bitcoin will rally, eventually becoming an asset class in the 14 zeros bracket. He says the digital asset in a decade from now will replace gold.