MicroStrategy, the prominent corporate holder of Bitcoin, has made another significant purchase. According to an SEC filing submitted on Monday, the company and its subsidiaries acquired approximately 5,445 Bitcoin between August 1 and September 24. The said purchase amounts to approximately $147.3 million in cash. The average cost per Bitcoin, accounting for fees and expenses, was around $27,053.
This latest purchase has expanded MicroStrategy’s Bitcoin holdings to a total of approximately 158,245 Bitcoin. Which was acquired at an average purchase price of approximately $29,582. The total purchase cost of MicroStrategy’s Bitcoin holdings now stands at $4.68 billion.
Despite the recent market conditions causing a decrease in the fiat value of Bitcoin, MicroStrategy continues to express confidence in Bitcoin as a long-term investment and store of value. The company initiated its cryptocurrency holdings in August 2020 as a hedge against inflation.
Why does Microstrategy still invest in Bitcoin?
MicroStrategy recorded a $24.1 million impairment charge on its Bitcoin holdings in Q2. However, the company remained profitable. It showcased its unwavering commitment to its Bitcoin investment strategy. In Q1 2023, MicroStrategy achieved its first profitable quarter since 2020. This profitability extended into the second quarter, with $22.2 million in net income.
MicroStrategy’s CEO, Michael Saylor, has emphasized the company’s dedication to consistently and responsibly pursuing its Bitcoin acquisition strategy.