There is a total of 91,064 BTC in the treasury of American company MicroStrategy. The price of a stock is still four times higher than before the company started to invest in Bitcoin.
The company name MicroStrategy has gradually become synonymous with institutional investments in Bitcoin (BTC). Their interest in investing in the pioneering cryptocurrency has not waned but has grown even more. In recent days, they acquired another 205 BTC for USD 10 million in cash.
The news is good for bitcoiners, but the company’s stocks show a downward trend on the Nasdaq Wall Street market. There has been a decline of more than 50% in the price in just under a month. In recent days, it went from USD 1,300 to USD 620 per stock at the close of the trade.
MicroStrategy’s stock is still worth four times its market price before the company started to invest in Bitcoin. Before they announced their first purchase in August, a stock of the company was trading at USD 145.
The fall in the price of the stocks could suggest the little receptivity to investments in Bitcoin when its price falls.
More Bitcoin for MicroStrategy Means More “Hodl”
Michael Saylor, CEO, and co-founder of the company revealed the new injection of capital into the pioneering cryptocurrency. On his Twitter account, the executive detailed the transaction and what it represents for MicroStrategy’s treasury.
“MicroStrategy has bought another 205 BTC for USD 10 million in cash, at an average price of USD 48,888 per unit. We have 91,064 BTC in ‘hodl’, which we acquired for USD 2,196 million at an average price of USD 24,119 per unit,” Saylor explained.
They officially announced the investment and sent a statement about it to the US Securities and Exchange Commission (SEC). The regulatory agency received from MicroStrategy a Form 8-K notifying the transaction.
Investing in Bitcoin with Own and Financed Funds
The company has been investing in the cryptocurrency since August 2020, with frequent monthly or weekly purchases. About a week ago, the company made its biggest investment in Bitcoin with USD 1 billion to acquire 19,452 BTC.
They said that they will continue to invest in Bitcoin, that is, they are not temporary movements due to the global financial situation. Those acquisitions give Bitcoin value as the main cryptocurrency on the market.
The CEO of MicroStrategy himself recently stated that they will buy more Bitcoin with the excess cash that they receive. He also said that the company will occasionally issue “debt or securities to raise funds aiming to buy more Bitcoin.”
Figures from the Bitcoin Treasuries service indicate that MicroStrategy’s total investment in Bitcoin currently has a value of USD 4.339 billion. In other words, the company has made more than 2,143 million, considering the current price of the cryptocurrency.
Institutional investors such as mutual funds and private companies have put around USD 46 billion into the cryptocurrency. The Tesla case has caught media attention, especially since they recently bought USD 1.5 billion worth of Bitcoin.
By Alexander Salazar
