MicroStrategy bought 7,000 BTC at an average price of USD 59,000 per unit. The value of the pioneering cryptocurrency recently went from USD 53,000 to USD 57,000.
In the fourth fiscal quarter of 2021, business software company MicroStrategy bought more than 7,000 BTC. It was a turnover of USD 414.4 million in cash to reach more than 120,000 BTC in its coffers.
A prospectus presented before the US Securities and Exchange Commission (SEC) states that MicroStrategy bought 7,002 BTC at an average price of USD 59,187.
The company led by Michael Saylor has become one of the largest institutional investors in the crypto asset. It now owns a total of 121,044 BTC, equivalent to a little more than USD 7 billion.
They say that they acquired all the Bitcoin at a total purchase price of USD 3.57 billion. In other words, they paid an average of about USD 29,534 per token, including fees and expenses.
MicroStrategy Has Purchased Bitcoin Recurrently
The business software company is among those that have bought the most Bitcoin. In September, they acquired an additional 5,050 BTC, thus accumulating 114,042 BTC in its reserves.
Sometime earlier, they confirmed that they had 105,085 BTC after announcing the purchase of more tokens. At that time, they bought 13,005 BTC on the order of USD 489 million.
It was public knowledge that MicroStrategy had acquired 20,857 BTC in the first quarter and 13,759 BTC in the second quarter of 2021. They did that as part of their investment strategies supported by the pioneering cryptocurrency.
The new investment of MicroStrategy occurred when BTC was facing low prices after the global rebound in COVID-19. That situation affected the cryptocurrency market and stock markets negatively.
However, the price of BTC has had a slight increase of 5% for an average of USD 57,000, according to CoinMarketCap.
While Some Applaud the Purchase, Others Criticize It
Several followers of Michael Saylor applauded the new turnover of MicroStrategy in favor of Bitcoin, but others criticized it.
A Twitter user responded to Saylor, congratulating him and stating that MicroStrategy is one of the whales wanting the price of BTC to rise.
He noted that they bought Bitcoin with an average of 59 while the instant price was 57. Jokingly he said that Saylor was a whale trying to raise the price of Bitcoin and a true gentleman.
However, another follower rebuked him, stating that such massive purchases make the system useless. He wrote that even if the company owned 1%, it would look like a flawed system.
Meanwhile, another questioned what would happen if they decided to take advantage of BTC and make the market crash.
However, MicroStrategy is one of the most Bitcoin-friendly companies, and the recent purchase drove the price to increase. It is early to talk about profits, but the commitment of that company to BTC seems serious.
Another company that has also invested in Bitcoin is the electric car company Tesla, whose CEO has influenced its price with his tweets. Even though they have announced they would not accept Bitcoin as a payment method, they keep it in their treasury.
By Alexander Salazar
