As Bitcoin corrects below $50,000, business intelligence firm MicroStrategy perceived this as an opportunity to buy more bitcoin at cheap prices. The bitcoin bug has purchased an additional 328 Bitcoins on March 1, for approximately $15 million for an average coin price of $45,710 at the time of purchase.
With this investment, the firm now owns a whopping 90,859 Bitcoins, worth $4.3 billion at current prices. Microstrategy’s investment style can pretty much be considered dollar-cost averaging, as its average purchase price stands at just $24,063 per coin. The announcement was made by company CEO Michael Saylor, who tweeted:
The company has been on a bitcoin buying spree since last year. The firm was a relatively little-known business prior to its Bitcoin move in August 2020 with an initial investment of $250 million on 21,454 coins.
Since then, the firm has continued to purchase the flagship cryptocurrency at various points throughout the year, amassing over 70,000 BTC by the end of 2020. In February, the firm bought 19452 BTC worth around $1.026 billion in cash, pushing its total bitcoin investment beyond $3 billion.
$2 billion in profits in 5 months time
The company’s total investment now stands at $2.18 billion. If the firm decides to sell its bitcoin holdings at current prices, it would make a total of $4.3 billion. This means the firm could score a profit of $2 billion made in just over five months’ time.
However, it is unlikely that MicroStrategy is anywhere near to selling its bitcoin stash. The firm’s CEO is a bitcoin advocate himself and noted on multiple occasions that one of the firm’s corporate goals was buying bitcoin.
“The Company remains focused on our two corporate strategies of growing our enterprise analytics software business and acquiring and holding bitcoin. The company now holds over 90,000 bitcoins, reaffirming our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, can serve as a dependable store of value.
We will continue to pursue our strategy of acquiring bitcoin with excess cash and we may from time to time, subject to market conditions, issue debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase additional bitcoin,” Saylor said last month.
MicroStrategy became a beacon for major corporations to step into bitcoin. Following its first acquisition, big names like PayPal, Tesla, and Mastercard have entered the crypto market. This has pushed institutional demand for bitcoin to levels not known before.