MicroStrategy has decided to leverage on the current market selloff to purchase more Bitcoin. The CEO Michael Saylor announced today that the firm has added more BTC to its holdings.
According to its SEC filings, the firm has bought $15 million worth of Bitcoin in cash at an average price of approximately $55,387 per Bitcoin, which is equivalent to roughly 271 BTC.
MicroStrategy’s Bitcoin purchase comes amid a widespread dip across the crypto market. The current market selloff was reportedly linked to Elon Musk’s announcement earlier today. The CEO revealed that Tesla will no longer accept Bitcoin for vehicle purchases.
The firm started its Bitcoin purchase in August 2020 with a $250 million commitment. A month after, the company bought an additional 38,250 BTC worth about $425 million. Since then, it has continued to add Bitcoin to its already existing stash.
As of May 13 2021, the firm now has a total of 91,850 BTC on its balance sheet. The total Bitcoin stash was purchased at an aggregate price of more than $2.2 billion, at an average price of $24,403 per BTC.
MicroStrategy to Continue Bitcoin Purchase?
Some experts like Marc Lichtenfeld had criticized the company for investing heavily in Bitcoin. According to an earlier report, Lichtenfeld said MicroStrategy is “completely irresponsible with shareholders’ capital by investing in a speculative and volatile asset.”
Last month, the firm released its first-quarter earnings report in 2021. MicroStrategy highlighted a 10% growth in revenue compared to Q1 2020. Saylor remarked that their “decision to acquire and hold Bitcoin as part of their two-pronged corporate strategy is generating substantial shareholder value.”
He added that the company will continue to acquire and hold more Bitcoin to provide extra value for shareholders. MicroStrategy’s purchase spree opened up the path for the broader adoption of Bitcoin by the mainstream.