Yesterday, MicroStrategy announced that it has spent $10 million on another Bitcoin purchase plus charges. The business intelligence company added 205 BTC to its already existing Bitcoin stash. This makes it the second time the company will buy Bitcoin this month.
Some financial experts have called the buying spree irresponsible. Other analysts believe that MicroStrategy is trying to drive the price of Bitcoin higher, especially with the fluctuating price of the crypto asset. However, the company has gone all in regardless of the views and the recent drop in the price of Bitcoin.
MicroStrategy started its Bitcoin acquisition last year August after purchasing 21,454 Bitcoin. Since then, the company has been aggressively bullish on Bitcoin even with its extreme volatility. The firm ended 2020 with more than 70,000 BTC in its custody.
Many had thought that MicroStrategy was done and would dump Bitcoin, but the company went on to acquire 310 BTC in January. This month, the company has bought Bitcoin on two different occasions. The total Bitcoin owned by the company is now inches away from 100,000.
MicroStrategy Paved way for Other Investors
The buying spree of MicroStrategy has so far made it the one of the largest hodlers of Bitcoin. Right now, the total Bitcoin in the company’s custody is 91,064 BTC with each BTC unit at an average price of $24,119. MicroStrategy entrance into the crypto market might have spurred other companies to follow suit.
Companies like Tesla, Square, BNY Mellon, and others also invested huge amounts in Bitcoin afterwards. The adoption of cryptocurrency by these traditional firms seems to have increased the mainstream acceptance of Bitcoin.
Last month, Tesla revealed it had invested $1.5 billion in Bitcoin. Several other Institutions have also opened up to Bitcoin after Tesla’s investment. The positive sentiments around Bitcoin have also helped with its adoption.