MicroStrategy CEO Michael Saylor announced the company has bought an additional 205 Bitcoins valued at roughly $10 million. This equates to an average price of $48,888 per BTC.
MicroStrategy has purchased an additional ~205 bitcoins for ~$10.0 million in cash at an average price of ~$48,888 per #bitcoin. As of 3/5/2021, we #hodl ~91,064 bitcoins acquired for ~$2.196 billion at an average price of ~$24,119 per bitcoin. $MSTRhttps://t.co/a0BRd4Wy3r
Following MicroStrategy’s latest purchase, the company now holds 91,064 Bitcoins with a total acquisition cost of $2.2 billion. Each BTC has an average price of about $24,119.
With the value of one Bitcoin being nearly double that today, MicroStrategy has realized a total profit of $2.1 billion. The company’s latest purchase is one of its many “symbolic” buys where it puts a few more million in BTC after every dip.
Furthermore, the purchase was funded by a bond offering of $900 million, done at an average price of $52,000 per Bitcoin. The coin’s value is currently below that due to a rough week on Wall Street.
Thursday’s buy coincided with a period of heightened tension on markets. That’s despite bond yields being on a steady and rise in the past few weeks. Which traditionally signals recovery from a recession and heightened inflation expectations.
However, this hasn’t reflected well on stocks or risk assets. The tension could possibly be having some effect on Bitcoin, but MicroStrategy does not seem deterred.
This was evident as the company chose not to sell its BTC even as the price has fallen 50% since February highs.
A look back at previous Bitcoin investments
MicroStrategy made its first Bitcoin investment last August as the cryptocurrency soared in value. The company has since made multiple purchases of the digital currency.
Bitcoin, MicroStrategy stock both trending downward
At press time, Bitcoin was trading at $47,909, which is down 1.1% from Thursday. Meanwhile, MicroStrategy shares shed 2.3% in premarket trading.
While it’s been a rough week for both Bitcoin and MicroStrategy, they still have enjoyed a productive year to this point. MicroStrategy’s stock has soared 96.9% over the past three months, while the price of BTC is up 156.4%.
Matt Borelli is a staff writer at CoinChapter, covering the daily developments in the cryptocurrency world. He is a Bitcoin enthusiast and proud Dogecoin holder. When not reporting on the latest cryptocurrency news, Matt can be found at the nearest baseball stadium.
Bitcoin (BTC) started the new weekly session in red, dropping by over 6% to below $32,000, its worst level...
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