Microstrategy Adds $10 Million Worth Of Bitcoin In Latest Purchase
The world’s largest independent business intelligence firm, Microstrategy, has completed 314 bitcoins for approximately $10 million. This purchase continues the accumulation of crypto assets by the intelligence firm, which began in 2020.
70,714 BTC in Microstrategy Portfolio
Microstrategy CEO Michael Saylor revealed the purchase by his firm on Twitter. According to the tweet, the bitcoins were bought using cash per its treasury reserve policy. In total, this latest round of bitcoin purchases totaled $10 million, including fees and expenses. The Bitcoins were also bought at an average price of $31,808 per unit, including fees and expenses.
Therefore, the investment company holds an aggregate amount of around 70,784 bitcoins purchased at approximately $1.135 billion. The average purchase price is approximately $15,964 bitcoin, inclusive of fees and expenses. Looking at the current value of Bitcoin, the Microstrategy portfolio is worth $2.294 billion, representing a 100% gain for the firm.
Microstrategy has continued to increase its holdings in bitcoin since making an initial purchase in August. The firm’s last purchase was in December when it purchased $650 million worth of Bitcoins. Microstrategy alongside Grayscale owns about 4% of the total bitcoins in circulation as BTC continues to gain mainstream finance relevance.
Institutional Adoption Hitting record numbers
Meanwhile, bitcoin’s rapid rise in value in the past few weeks has largely been driven by institutional adoption of the coin. Several traditional financial firms have begun to purchase bitcoins in recent months, and demand seems to be at a record high. Towards the end of 2020, American insurance firm MassMutual purchased $100 million worth of BTC. This huge purchase sent an indication to the traditional finance sector that bitcoin is indeed the digital gold.
Bitcoin is currently in a slight bearish zone, with the coin currently valued at around $31 000. Although the slight bearish dip has caused some concern, the market sentiments remain positive. This latest MicroStrategy purchase shows that the hype is not over, and more institutions could join in the coming months