Business intelligence firm MicroStrategy announced that it has increased its Bitcoin holdings by 27% after purchasing an additional 19,452 coins. The average cost per coin was $52,765, equating to a total of just over $1 billion.
MicroStrategy purchase exceeded the figures previously floated by the firm, which announced it would raise $900 million to buy more Bitcoin last week.
“The company remains focused on our two corporate strategies of growing our enterprise analytics software business and acquiring and holding Bitcoin,” said MicroStrategy CEO Michael Saylor.
MicroStrategy first invested $250 million in BTC last August. The company has since spent an additional $4 billion on digital assets.
Saylor said there are no plans for MicroStrategy to stop buying BTC. “The company now holds over 90,000 Bitcoins. Reaffirming our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, can serve as a dependable store of value.
“We will continue to pursue our strategy of acquiring BTC with excess cash. And we may from time to time, subject to market conditions, issue debt or equity securities in the capital. Raising transactions with the objective of using the proceeds to purchase additional Bitcoin.”
Bitcoin price rebounds to $50,000 after MicroStrategy investment
Following MicroStrategy’s announcement, BTC climbed back above the $50,000 mark Wednesday. The leading cryptocurrency recovered from its steep plunge earlier this week for a 4% gain.
The surge additionally was helped by digital payments firm Square, who bought some 3,318 bitcoins for a total of $170 million. The Cash App owner said its BTC investment now represents about 5% of its cash equivalents.
Square’s announcement came about two weeks after Tesla revealed it had bought $1.5 billion in Bitcoin. The purchase helped spark a rally that allowed BTC to reach a new all-time high of $58,000.
However, the cryptocurrency market tanked after Tesla CEO Elon Mark said he thought the prices of Bitcoin and Ether were too high. The declines can also be attributed to United States Treasury Secretary Janet Yellen saying Bitcoin was “extremely inefficient.”
