Even more Bitcoin: Michael Saylor and MicroStrategy buy more BTC
Michael Saylor announced that MicroStrategy has bought another $15 million worth of Bitcoins. Is the company taking advantage of the average cost effect here?
MicroStrategy is blithely continuing to buy bitcoin. CEO Michael Saylor announced the purchase of another 328 Bitcoin (BTC) on Monday. These were paid for in cash and cost the company around $15 million. This equates to an average price of US$45,710 at the time of purchase.
With the investment, MicroStrategy now owns 90,859 Bitcoins. Currently, these are worth around 4.3 billion US dollars. The company has used a kind of Bitcoin Era average cost effect with regard to Bitcoin over the last five months. The average rate on all bitcoin purchases is US$24,063 per coin. Saylor tweeted on Monday:
The firm first bought bitcoin in August 2020
At the time, it bought 21,454 coins worth US$250 million. MicroStrategy bought more BTC at various points towards the end of 2020, eventually amassing over 70,000 coins by the turn of the year.
In February, the company announced it would raise another US$900m to buy Bitcoins again. Eventually, it raised over 1 billion US dollars. Last Wednesday, the company bought another 19,452 coins.
In total, MicroStrategy has spent about 2.18 billion US dollars on Bitcoin. At current exchange rates, the company would have valued Bitcoins at US$4.3 billion. This means that if the company were to sell now, it would have made over US$2 billion in five months. However, that is unlikely to happen any time soon. Saylor previously said that buying Bitcoins was one of the company’s two business goals. The second goal is to further expand its analytics software business.