MicroStrategy, the software company of bitcoin maximalist Michael Saylor, acquired 660 BTC in its first bitcoin purchase of the year.
The new portion of cryptocurrencies was acquired throughout January for an average price of US$ 37,865 per bitcoin, an investment equivalent to US$ 25 million, as the company disclosed this Tuesday (1st) in report sent to the SEC.
With the new purchase, MicroStrategy’s total bitcoin balance rose to 125,051 BTC, about $4.8 billion at the asset’s current price of $39,000.
As the company spent an aggregate amount of $3.7 billion to acquire these coins, investing in bitcoin has already earned it an unrealized profit of more than $1 billion.
MicroStrategy was one of the first publicly traded companies to add bitcoin to cash in 2020 and since then has been making periodic purchases of the cryptocurrency, whether in bear or bull markets.
According to data from Bitcoin Treasuries, MicroStrategy’s bitcoin cash is four times the position of Tesla, the publicly traded company with the second-largest BTC balance.
MicroStrategy’s bet on bitcoin
MicroStrategy closed 2021 with 124,391 BTC. The last purchase of the year was made in December, when 1,914 BTC was added to his wallet for an amount of around $49,220 each.
In November, the company had spent even more to buy 1,434 BTC, since at the time the price of bitcoin was around $57,470, which makes these purchases a loss.
But that doesn’t seem to bother the company, whose CEO has already pointed out on numerous opportunities that it invests in bitcoin for the long term, such that short-term price fluctuations are not relevant.
Furthermore, Michael Saylor is not the only cryptocurrency advocate within MicroStrategy. The company’s chief financial officer Phong Le said in interview recent report to The Wall Street Journal that MicroStrategy will continue to acquire bitcoin throughout 2022.
“Our strategy with bitcoin has been buy and hold, so as long as we have excessive cash flows or find other ways to raise money, we continue to put it into bitcoin,” Le said.