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MicroStrategy Buys Additional $1.026B Worth Of Bitcoin, Surpasses Tesla's Bitcoin Holdings

February 24, 2021 10:52 am
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MicroStrategy Buys Additional $1.026B Worth Of Bitcoin, Surpasses Tesla's Bitcoin Holdings

What Happened: MicroStrategy Incorporated (NASDAQ:MSTRannounced today that it had purchased an additional $1.026 billion Bitcoin.

The company stated that it now holds an aggregate of 90,531 bitcoins, which were acquired at an average purchase price of approximately $2.171 billion.

This was achieved at an average purchase price of approximately $23,985 per Bitcoin, including fees and expenses, stated MicroStrategy in a press release.

Why It Matters: "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,” said the company’s CEO Michael Saylor.

Earlier this week, Saylor predicted that Bitcoin’s market capitalization could reach $100 trillion one day.

"We believe our Bitcoin strategy, including our Bitcoin holdings and related activities in support of the Bitcoin network, is complementary to our software business by enhancing awareness of our brand and providing opportunities to secure new customers," he said.

MicroStrategy has consistently added more Bitcoin to its balance sheet since its initial investment in the digital asset last August.

In fact, its stock price has largely moved in tandem with the price of Bitcoin and is up by over 300% since its investment.

 

The move wasn’t entirely unprecedented, as the company announced last week that it had completed a $1.05 billion debt offering to fuel more Bitcoin purchases.

What Else: MicroStrategy wasn’t the only company to announce an additional Bitcoin purchase today.

Square Inc (NYSE:SQdeclared a $170 million Bitcoin purchase on top of its existing $50 million in an earnings call earlier today.

With over $2 billion in Bitcoin, however, MicroStrategy has now overtaken Tesla Inc (NASDAQ:TSLA) to become the largest Bitcoin holder amongst all publicly traded companies.

Image: Worldspectrum via Pexels


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