MicroStrategy Just Bought Another $4.6 Billion Worth of Bitcoin


From decrypt by Ryan S. Gladwin

MicroStrategy, a software firm founded by Michael Saylor, disclosed Monday morning that it has bought another 51,780 Bitcoin at an average price of $88,627, totaling $4.6 billion, according to an SEC filing.

As he always does, the company’s Executive Chairman, Saylor, boasted about the purchase on Twitter by noting that the company’s holdings now total 331,200 Bitcoin. The software company's Bitcoin stash was acquired for $16.5 billion in total, but thanks to the recent price rally, it's now worth almost double that at $29.65 billion.

The latest move comes after the firm purchased $2 billion Bitcoin just last week, at an average price of $74,463. Combined, that means MicroStrategy has bought 51,780 Bitcoin over the past seven days. 

For perspective: This figure is twice the global Bitcoin exchange-traded product (ETP) inflow over the past week, according to Vetle Lunde, Head of Research at K33Research.

Bitcoin’s price has been surging since Donald Trump secured a second term as President of the United States. The pro-crypto candidate has made a range of promises to the industry, from creating a strategic Bitcoin reserve to firing SEC Chair Gary Gensler.

The orange coin has broken its all-time high price mark multiple times over the past two weeks, with its latest peak being $93,477, according to CoinGecko. With this, MicroStrategy's stock price also hit an all-time high, surpassing a market capitalization of $69 billion last week, thanks to the firm stockpiling Bitcoin.

  Last week, according to Google Finance, MSTR traded at a peak of $383 and has since fallen to a current price of about $350. Meanwhile, Bitcoin has risen by nearly 11% over the past 7 days to a current price of $90,765.

Founded in 1989, MicroStrategy was originally a data intelligence software company. However, in 2020, the firm bought $250 million worth of Bitcoin as Saylor looked to spice up the company’s books during the pandemic.

Since then, the firm’s destiny has been closely tied with Bitcoin, with MicroStrategy even rebranding itself as a Bitcoin development company. In October, MicroStrategy outlined a plan to purchase $42 billion worth of Bitcoin over the next three years.