MicroStrategy Buys $6 Million Worth of Bitcoin
Investment firm MicroStrategy has announced its latest Bitcoin acquisition valued at $6 million.
Why Did MicroStrategy's Latest $400 Million Bitcoin Purchase See BTC Prices Drop?
On the evening of September 20, MicroStrategy Chairman Michael Saylor revealed that his company made its first Bitcoin (BTC) purchase of Q3 2022, acquiring 301 BTC for $6 million. The purchase price for this transaction was $19,851 per BTC.
MicroStrategy has purchased an additional 301 bitcoins for ~$6.0 million at an average price of ~$19,851 per #bitcoin. As of 9/19/22 @MicroStrategy holds ~130,000 bitcoins acquired for ~$3.98 billion at an average price of ~$30,639 per bitcoin.https://t.co/5kYW98ij4I
— Michael Saylor⚡️ (@saylor) September 20, 2022
This marks MicroStrategy's fourth Bitcoin buy in 2022, with each purchase reflecting the downward trend in the cryptocurrency market, contrasting sharply with the bullish period of 2020-2021. The company’s most recent purchase before this was in late June, valued at a mere $10 million.
As of now, MicroStrategy’s Bitcoin holdings have reached a total of 130,000 BTC, with a total acquisition cost of $3.89 billion and an average purchase price of $30,639 per BTC. This may explain why the company opted for a smaller purchase of 301 BTC.
With Bitcoin priced at $19,160 at the time of this report, the company’s investment is currently valued at approximately $2.48 billion, representing a loss of nearly 38%.
Historical Bitcoin Purchase Stats for MicroStrategy
Source: Saylor Tracker
In Q2 2022, MicroStrategy reported a loss of $918 million from its Bitcoin investments, which led to Michael Saylor stepping down as CEO after over 30 years, transitioning to the role of Chairman. Saylor's misfortunes continued as he faced tax evasion allegations from the Washington DC government.
Despite these setbacks, MicroStrategy and Michael Saylor’s confidence in Bitcoin remains unwavering. Earlier in September, reports emerged that MicroStrategy is seeking to raise an additional $500 million by selling bonds, continuing its strategy to invest in the world’s leading cryptocurrency.
