On April 5, 2021, Nasdaq-listed firm Microstrategy added around 253 Bitcoins to its reserves for $15 million in cash.
The business intelligence company’s Chief Executive, Michael Saylor, took to Twitter to announce the purchase, which brings the total holdings to about 91.579 bitcoin. The firm procured the fresh batch of BTC at an average price of $59,339 per Bitcoin.
Crypto advocate bull Anthony Pompliano shared the Microstrategy BTC purchase news on his Twitter page, explaining that the US-based enterprise software firm now owns 91.579 BTC acquired at an aggregate purchase price of $2.226 billion.
Overall, the average price of $24,311 per BTC that MicroStrategy has used to purchase the leading cryptocurrency over time is much lower than its current market price of about $59,000.
Bitcoin has seen mounting institutional demand after it delivered a return of over 800% over the past 12 months.
Microstrategy was among the earliest corporate backers of the world’s top cryptocurrency. The business intelligence firm purchased its first batch of BTC in August of 2020 using existing cash on its balance sheet, starting a trend of adding the digital asset to its treasury.
More Corporates are Jumping on the BTC Train
Since Microstrategy invested $250 million investment in Bitcoin last August, many more corporations have followed suit.
The US electric car manufacturer Tesla made headlines for purchasing $1.5 billion in BTC in February. Other large holders of the flagship crypto include Grayscale and Square. Inc, both of which are offering their clients bitcoin investment services.
In the last week, two major payment providers also started offering crypto services to their millions of clients. Visa announced it would begin settling transactions in USDC, a US dollar-backed stablecoin. Around the same time, PayPal introduced crypto checkout options that are expected to foster the use of top cryptocurrencies such as BTC, ETH, and LTC.
Michael Saylor’s Firm Leads the Way
Despite many major global corporations like Goldman Sachs, Mastercard, and BNY Mellon recently making significant investments in BTC, Microstrategy will always be known as one of the earliest corporate backers of the cryptocurrency.
The Michael Saylor-led firm uses its stock as a publicly listed proxy to invest in BTC, and it has so far made billions in profits.
“This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash,” Saylor stated earlier.
As reported by the Daily Chain, the Microstrategy CEO believes that sovereign wealth funds are ready to enter the bitcoin market. He predicts that institutional investors could double or even triple their bitcoin allocation shortly, adding that the market will likely see an influx of new hedge fund players.
