The price of Bitcoin shot up 7% on Monday following MicroStrategy’s announcement. That is purchased an additional $15 million worth of the leading cryptocurrency.
MicroStrategy CEO Michael Saylor specifically noted that the company bought 328 Bitcoin. At an average price of around $45,710 each.
MicroStrategy now owns close owns close to 90,859 Bitcoin. Which were acquired at an aggregate purchase price of about $2.19 billion. That is an average purchase price of around $24,063 per Bitcoin.
MicroStrategy’s BTC holdings are valued at about $4.38 billion. Meaning they’ve made a profit that’s double their total investment.
MicroStrategy made their first BTC purchase in August 2020. And have steadily increased their holdings since then. Last week the company bought another 19,452 Bitcoin worth around $1.03 billion.
Other major firms adding Bitcoin to balance sheet
Electric car giant Tesla made one of the biggest BTC investments earlier this year. Purchasing $1.5 billion worth of BTC helped its price reach a new all-time high.
Citibank admits BTC could become the global trade currency and eventually replace the U.S. dollar
Big financial institutions additionally are continuing to warm up to Bitcoin. Citibank said the coin could become the global trade currency and eventually replace the U.S. dollar.
“The entrance of institutional investors has sparked confidence in cryptocurrency. But there are still persistent issues that could limit widespread adoption.
For institutional investors, these include concerns over capital efficiency, insurance and custody, security, and ESG considerations from BTC mining.
Security issues with cryptocurrency do occur, but when compared to traditional payments, it performs better.”
Although Citibank has added that Bitcoin could face major hurdles with mainstream adoption, it is the first big financial institution to acknowledge that crypto performs better over traditional payments.