MicroStrategy buys more bitcoin for nearly $243 million
(Kitco News) - Enterprise software company MicroStrategy has added more Bitcoin to its balance sheet.
MicroStrategy CEO Michael Saylor first bought Bitcoin for the company’s treasury more than a year ago, a move that has since been emulated by Jack Dorsey’s Square and Elon Musk’s Tesla.
Saylor revealed on Twitter that the company is adding another 5,050 Bitcoins to its stash, doling out close to $243 million in the latest round. MicroStrategy scooped up the leading cryptocurrency at an average price of $48,099 per coin, with the latest buying spree buoying the company’s tally to more than 114,000 Bitcoins as of Sept. 12. With the Bitcoin price currently hovering at $44,000, Saylor bought before the latest sell-off. Based on his latest tweet, however, the MicroStrategy chief does not seem worried.
Slow and steady wins the race. #Bitcoin— Michael Saylor?? (@michael_saylor) September 13, 2021
MicroStrategy began acquiring the leading cryptocurrency in August 2020. Since then, Saylor has spent more than $3 billion to add Bitcoins on the balance sheet at an average price of just over $27,700. That is a bargain compared to the current Bitcoin price. The move has paid off, as MicroStrategy’s Bitcoins are currently worth more than $5 billion.
For all of the third fiscal quarter, which ended on Sept. 12, MicroStrategy bought 8,957 billion, spending more than $419 million of the company’s cash to do so. The average price in the quarter was $46,875 for each Bitcoin, below the recently visited $50,000 level for the flagship cryptocurrency.
According to market leaders, it is only a matter of time before the Bitcoin price will cross the psychologically important $50,000 level once again. Anthony Pompliano of Pomp Investments wouldn’t be surprised to see the Bitcoin price surpass $100,000 by year-end.
Shares of MicroStrategy are down 2% on the day but have rallied about 50% year-to-date.