MicroStrategy CEO Michael Saylor announced that the firm purchased 2,574 bitcoins for $50.0 million in cash, bringing the business intelligence company’s treasury holdings to approximately 40,824 bitcoins. The firm revealed in a filing to the U.S. Securities and Exchange Commission. The firm first bought $250 million in bitcoin on Aug. 11. and then an additional $175 million worth of BTC one month later. The price of bitcoin reached an all-time high earlier before sliding down to just under $19,000.
The latest purchase is part of MicroStrategy’s treasury reserve policy.
MicroStrategy CEO Micahel Saylor said the latest purchase is part of MicroStrategy’s treasury reserve policy of eschewing inflation-prone cash for bitcoin. The firm’s executive heralds bitcoin as the “most rational” vessel for value storage anywhere in the world. The company’s shares have soared 170% since the CEO first hinted at the firm’s interest in Bitcoin in late July 2020. Some now call the company a de-facto bitcoin ETF – albeit an inefficient one. Crypto-market watchers have cited the Virginia-based company’s moves, along with those of Square Inc. and positive comments from noted investors such as Paul Tudor Jones and Stan Druckenmiller, as helping show that the asset class has come of age.
MicroStrategy has purchased approximately 2,574 bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $19,427 per bitcoin. We now hold approximately 40,824 bitcoins.https://t.co/nwZcM9zAXZ
— Michael Saylor (@michael_saylor) December 4, 2020
Bitcoin continues to hover around $19,000.
The price of bitcoin reached an all-time high this week before dropping down just below $19,000. At the time of writing, the price of bitcoin is $18,950. The short term prediction for the leading cryptocurrency is still bullish. Bitcoin made a massive recovery this year after plummeting down to below $4,000 in March when the global pandemic hit. The last time bitcoin was in this price range was back in 2017.
