MicroStrategy splashes $177M on Bitcoin, now holds almost 109,000 BTC
MicroStrategy has once again purchased more Bitcoin (BTC), with the company adding 3,907 BTC to its holdings.
According to a Form 8-K filing with the United States Securities and Exchange Commission published on Tuesday, the business intelligence upped its Bitcoin holdings by 3,907 BTC between July 1 and Monday, Aug. 23.
The SEC filing also revealed that MicroStrategy spent an average of $45,294 to acquire the additional Bitcoin.
With its latest purchase, Michael Saylor’s firm now holds 108,992 BTC, which cost the company about $2.918 billion to acquire at an average price of approximately $26,769 per “coin.”
With Bitcoin trading above $49,000, the company’s Bitcoin holdings are worth over $5.3 billion.
Wednesday’s purchase announcement also serves as a fulfillment of earlier promises to continue adding to its Bitcoin position. As previously reported by Cointelegraph, the firm stated back in June that the paper losses suffered on its holdings during the crypto market decline in Q2 had done little to dampen BTC appetite.
Indeed, the over 50% crypto market decline did cause some impairment losses for U.S. firms with Bitcoin holdings. Tesla also reported a $23 million impairment loss on its Bitcoin holdings as part of its Q2 financials.
MicroStrategy announced its first Bitcoin purchase back in August 2020 and has consistently added to its BTC position. The firm’s CEO, Michael Saylor, has also become a BTC proponent even encouraging other companies to consider adding Bitcoin to their balance sheets.
MicroStrategy’s latest Bitcoin balance sheet expansion comes on the heels of the BTC price action moving above the $50,000 mark for the first time since May. The move marked an 87% upward swing for the largest crypto by market capitalization since falling to the $27,000 bottom back in mid-May.
Bitcoin is yet to hold the $50,000 as the upward rally stalled at $50,500 with BTC losing $2,000 in the last 24-hour trading period.