MicroStrategy buys additional 229 bitcoin for $10 million

Business intelligence company MicroStrategy, as it turns out, leveraged the recent slump in the price of bitcoin to once again increase its holdings of the cryptocurrency.

According to CoinTelegraph, Chief Executive Officer Michael Saylor announced on Twitter that MicroStrategy spent $10 million to purchase 229 bitcoins at a unit price of $43,663, confirming it on its Securities and Exchange Commission filing on Tuesday.

Pundits believe that this additional buy indicates the company’s strong conviction towards the digital asset despite a series of price collapse it experienced in the past days.

Based on price monitoring of CoinGecko, bitcoin’s price stands at $40.6K and is now down 28.4% for the seven days.

Accumulating more Bitcoin

Last week, the Virginia-based company spent $15 million to buy 271 bitcoins having an average price of $55,387. On his Twitter post, Saylor said MicroStrategy now holds 92,079 bitcoins which they acquired for a staggering combined price of $2.251 billion. The coins had an average price of $24,450.

The latest industry figures indicate the company now accounts for 4.48% of the total circulating supply of bitcoin and no other publicly traded company comes close to matching MicroStrategy’s bitcoin game. In fact, the company came to as far as owing a debt just to finance additional purchases it made.

More institutional bitcoin purchases

While the crypto market became very volatile for the past 30 days, a number of institutions have increased their Bitcoin holdings just like what MicroStrategy did.

According to data from Bitcoin Treasuries, over the same period, 215,000 bitcoin have been accumulated by a number of institutions.

Analysts believe this only shows the high level of confidence of various companies in the digital asset. Meanwhile, the recent outflows of the crypto in Coinbase also indicate investors are willing to hold on to it for the long haul.


Image courtesy of Cointelegraph News/YouTube

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