- By announcing the purchase of yet another sizable hoard of cryptocurrencies, MicroStrategy is sending an optimistic message to the market.
- MicroStrategy and its affiliates had a total of around 158,245 BTC, inclusive of fees and expenses.
By announcing the purchase of yet another sizable hoard of cryptocurrencies, business intelligence company MicroStrategy, a significant Bitcoin investor, is sending an optimistic message to the market.
On September 25, Michael Saylor, co-founder and executive chairman of MicroStrategy, announced a purchase of 5,445 BTC by the company on X (formerly Twitter). At an average cost of $27,053 per bitcoin, the coins were purchased for $147.3 million in cash.
MicroStrategy and its subsidiaries bought the sum between August 1 and September 24, according to a Form 8-K filing with the US Securities and Exchange Commission (SEC).
According to the statement, as of September 24, MicroStrategy and its affiliates had a total of around 158,245 BTC, which were purchased at an average cost of about $29,582 per coin, inclusive of fees and expenses. Bitcoins owned by MicroStrategy as a whole were purchased for a total of $4.68 billion.
Bitcoin had been trading in a range of $26,000 over the past few weeks when the latest purchase was made. Having temporarily reached $28,000 on August 29, Bitcoin fell to as low as $25,000 on September 11.
According to data from CoinGecko, the price of Bitcoin is $26,081, a 1.9% decrease from the previous day. Additionally, over the last seven days, the cryptocurrency has decreased by almost 4%.
The most recent acquisition by MicroStrategy strengthens the firm’s strong outlook on Bitcoin. At an average purchase price of $29,668 per coin, the company previously purchased 12,333 BTC for $347 million in June 2023.
MicroStrategy declared its first profitable quarter since 2020 in Q1 2023 as a result of a one-time income tax benefit. With a net income of $22.2 million reported in early August, the business was still profitable in the next quarter.