MicroStrategy purchases 7,002 bitcoins for $414 million
MicroStrategy purchases 7,002 bitcoins for $414 million
MicroStrategy's CEO and co-founder, Michael Saylor, announced that the company has acquired 7,002 Bitcoin valued at $414.4 million to add to its existing portfolio of assets. The Securities and Exchange Commission (SEC) of the United States reported that 7,002 bitcoin were purchased with cash at an average price of approximately $59,187 per bitcoin, fees and expenses included. The total amount of bitcoin purchased was $7,002 bitcoin.
In recent years, MicroStrategy, a data analytics company, has been acquiring bitcoin in large quantities. The company's most recent acquisition of 7,002 bitcoins (BTC) brings its total bitcoin holdings to approximately 121,044 bitcoins (BTC), making it the largest corporate bitcoin owner in the world. According to the portfolio's purchase price, the total purchase price was $3.57 billion, with an average purchase price of approximately $29534 per bitcoin purchased.
The latest acquisition comes at a time when the cryptocurrency market is experiencing volatility, with Bitcoin approaching a seven-week low. This comes in the wake of recent concerns about a newly identified coronavirus variant dubbed omicron having an impact on the broader market, which has prompted this action. Bitcoin was trading at $57,000 on Monday morning, down nearly 18 percent from its all-time high of around $69,000 reached back in November. Despite this, the price has risen by an incredible 94 percent year on year, according to the latest figures.
MicroStrategy has stayed true to its August 2020 commitment to use bitcoin as its treasury reserve asset, according to the company. In a statement, it stated that it considered digital currency to be a safe store of value as well as an appealing long-term investment. Using proceeds from previously disclosed stock sales in June, the company was able to make the most recent acquisition possible. The sale of 571,000 shares resulted in a total revenue of approximately $414.4 million for the company.
MicroStrategy's stock has increased by more than 350 percent since the company began making significant investments in bitcoin in August 2020. On the other hand, it has proven to be extremely vulnerable to the extreme volatility of the cryptocurrency market.
Despite the fact that bitcoin has fallen to its lowest level since mid-October on Friday, the wild price swings in cryptocurrency have only gotten worse this month. After reaching a peak of nearly $3 trillion in value on November 10, the cryptocurrency market is now worth less than $2.6 trillion, according to the latest estimates.
Numerous analysts remain skeptical that bitcoin has established itself as a reliable store of value and inflation hedge, despite the volatile asset's meteoric rise during the pandemic and widespread adoption. The new coronavirus variant, according to analysts, has the potential to cause additional stock market losses, putting significant downward force on bitcoin prices.
