CEO Michael Saylor announced earlier this morning his firm has purchased approximately 328 more bitcoins for $15 million in cash, bringing the total to $4.45 billion. This latest purchase was made at an average purchase price of $45,710 per bitcoin.
Since the splashy announcement of the company’s first bitcoin purchase last August, MicroStrategy has been aggressively expanding its crypto trove. As of March 1st, the business intelligence company holds 90,859 BTC acquired for $2.19 billion, roughly half the value of the current holdings.
In less than a year, a relatively obscure intelligence software firm has turned itself into what many call a de-facto bitcoin ETF and its CEO Michael Saylor into one of bitcoin’s most prominent evangelists. Other famous bitcoin bulls include Galaxy Digital CEO Mike Novogratz and Twitter and Square
founder and CEO Jack Dorsey, whose companies also bought hundreds of millions of dollars worth of bitcoin.
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Here’s the timeline of MicroStrategy’s largest bitcoin acquisitions to date:
- August 11, 2020: MicroStrategy reveals its first bitcoin purchase worth $250 million – at the time, one of the largest cryptocurrency acquisitions made by a publicly traded company
- September 14, 2020: The board of directors adopts a new treasury reserve policy, making bitcoin the company’s primary treasury reserve asset. An additional purchase of 16,796 BTC at an aggregate purchase price of $175 million announced.
- December 21, 2020: MicroStrategy’s bitcoin acquisitions cross $1 billion with another $650 million investment.
- February 24, 2021: Following Tesla’s
1.5 billion investment in bitcoin, the firm bought an additional $1 billion worth of the cryptocurrency after an equivalent debt raise.
The Big Picture: Since August, bitcoin’s price more than quadrupled from $11,394 to $48,400, as behemoths like PayPal
and Tesla, following MicroStrategy’s lead, bought into and simultaneously contributed to the bitcoin mania; MicroStrategy’s stock is up more than 700%, and City analysts say the world’s most popular cryptocurrency is “at the tipping point of mainstream acceptance or a speculative implosion.”
Microstrategy’s chief executive predicts “bitcoin is going to flip gold” and eventually “subsume the entire gold market cap. Once it gets to $10 trillion, its volatility will be dramatically less. As it marches toward $100 trillion, you’re going to see the growth rates fall, the volatility fall, and it’s going to be a stabilizing influence in the entire financial system of the 21st century.”
Question Mark: Despite the meteoric rise and increasingly probable mainstream adoption just around the corner, bitcoin remains a highly volatile asset, most recently tumbling 20% from its peak just a bit short of $60,000. Last week, Bill Gates issued a warning against mindless bitcoin shopping amid the enthusiastic speculations of the likes of Elon Musk’s.