MicroStrategy Announces Yet Another Bitcoin Purchase of 5,050 Coins For $242.9M

MicroStrategy is not slowing down in its Bitcoin play as it has announced yet another Bitcoin purchase of 5,050 units for approximately $242.9 million at an average price of $48,099 per BTC.

Michael Saylor, founder and CEO of MicroStrategy, an American business intelligence, mobile software, and cloud-based services provider, announced the news on Twitter on Monday, September 13.

According to him, his company now has approximately 11,042 BTCs on its balance sheet acquired for about $3.16 billion at an average price of $27,713 per Bitcoin.

The announcement reads:

MicroStrategy has purchased an additional 5,050 bitcoins for ~$242.9 million in cash at an average price of ~$48,099 per #bitcoin. As of 9/12/21 we #hodl ~114,042 bitcoins acquired for ~$3.16 billion at an average price of ~$27,713 per bitcoin. $MSTRhttps://t.co/2ESbTy6ad7

— Michael Saylor⚡️ (@saylor) September 13, 2021

This $3.16 billion investment in the world’s largest crypto coin now a current value of $5.1 billion which counts a 42% gain. According to FORM 8-K filed the US Securities and Exchange Commission (SEC), during the third quarter, from July 1 to September 12, the company purchased approximately 8,957 bitcoins for approximately $419.9 million in cash, at an average price of approximately $46,875 per bitcoin, inclusive of fees and expenses.

Responding to the announcement, Bitcoin bull Anthony Pompliano said:

Congratulations. Your shareholders are fortunate to have you leading them into the future 🙂

— Pomp 🌪 (@APompliano) September 13, 2021

MicroStrategy made its first Bitcoin purchase back in August of 2020 that was followed by many more. MicroStrategy’s move was followed by many other institutions like Square and Tesla. As Crypto Economy reported, the second last purchase was in June 2021 in which the company announced the purchase of 13,005 BTC for $489 million in cash at an average price of $37,617 per BTC. At the time, the company’s total BTC reserve was 105,085 BTC.

By the end of Q2 2021, the company reported a $689.6M loss on its Bitcoin investments in its Q2 financial report. The total $3.16 billion invested in the coin now worth more than $5 billion, which calculates to about 42% of profits on investment.

MicroStrategy still has no plans to slow down its aggressive accumulation strategy. The motive behind all this is to explore an alternative to holding fiat currency which is subjected to depreciation amidst unfavorable economic conditions. But not everyone is pleased with this strategy. Some believe that the crypto market will crash to disastrous lows when MicroStrategy will sell its huge Bitcoin holdings.

The firm has not yet shared its plans to dispose of its holdings in the near future but if it happens, it will have a ripple effect on the entire crypto market.