Michael Saylor, the CEO of publicly listed American business analytics firm, MicroStrategy, has announced the company’s latest Bitcoin holdings via his Twitter Feed.
“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, ” Saylor tweeted.
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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
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MicroStrategy and Bitcoin
- At the time of writing this report, bitcoin traded at $19,289.09. With a daily trading volume estimated at $25 billion, the cryptocurrency has been up 0.67% in the last 24 hours.
- It remains the most valuable crypto by market value, with a market capitalization of $358 billion. It has a circulating supply of 18,564,306 BTC coins and a maximum supply of 21,000,000 BTC coins.
- Prior to these purchases, Saylor had made major headlines when he persuaded his board to allocate nearly all of MicroStrategy’s $425 million cash position to bitcoin.
- The company has made a number of headlines in recent times for its initial $250 million Bitcoin (BTC) investment. It later poured a subsequent $175 million into the asset – a lengthy endeavour totalling almost 100 hours of work.
- After buying more than $425 million worth of bitcoin, the business analytic company bought more bitcoin worth $50 million as part of the company’s capital allocation strategy.
READ: How investors make money from Bitcoin without owning crypto
What you should know
Nairametrics, revealed a few months back, how MicroStrategy adopted Bitcoin as a treasury reserve asset to hedge against fiat inflation. This is a big deal and it’s good to see BTC’s being used as intended – a hard money/savings instrument.
“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” said Michael Saylor.
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“This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash,” he added.
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