Michael Saylor announced that MicroStrategy has invested an additional $15 million in Bitcoin. The company is thus continuing dollar-cost averaging in Bitcoin.
Dollar-cost averaging is a process through which a company or person invests a certain sum in stocks or other assets every accounting period. Thus, an investor gets more when the price is low and less when the price is high.
$15 Million Poorer & 328 BTCs Richer
CEO of MicroStrategy Michael Saylor announced the purchase of another 328 bitcoins by early next month. The investment, which was paid for in cash, cost the company approximately $15 million. That’s an average BTC price of $45,710 at the time of purchase.
Thus, the investment increases MicroStrategy’s total Bitcoin amount to 90,859 BTCs. Based on the current Bitcoin price, this corresponds to a total value of $4.43 billion. The company has been leveraging the dollar cost average to buy Bitcoin over the past five months. Currently, the average price per BTC is $24,063 based on all Bitcoin investments made to date. Saylor tweeted on Monday:
A Brief History of MicroStrategy & Bitcoin
MicroStrategy acquired Bitcoin for the first time in August 2020. At that time, the company invested $250 million for the first time and received 21,454 BTCs for it. By the end of 2020, MicroStrategy purchased more bitcoins, ending the pandemic year with a portfolio of over 70,000 bitcoins.
In February, MicroStrategy announced that it would invest an additional $900 million in Bitcoin. Ultimately, the sale of convertible bonds even raised over a billion US dollars, which were more or less completely invested in the digital asset. Last Wednesday, Saylor announced that MicroStrategy had bought another 19,452 bitcoins.
MicroStrategy’s total spending on Bitcoin is $2.18 billion. Based on the current Bitcoin rate, BTCs are now worth $4.43 billion. That means the company would have made over $2 billion in five months in the case of a sale. However, currently, there is little reason to believe that this will happen anytime soon, if at all.
In a recently conducted interview with Squak Box Saylor reaffirmed that there is no good reason to sell bitcoins. In any case, according to MicroStrategy’s CEO, the purchase of Bitcoin is one of the company’s two corporate goals, along with expanding the analysis software business.
Meanwhile, the crypto community can soon expect a weekly tweet from MicroStrategy’s CEO Michael Saylor about a new BTC investment. With the recent purchase of Bitcoin worth $15 million, MicroStrategy is underlining its superiority among institutional investors. At the same time, the company benefits from the average cost effect. MicroStrategy would have earned two billion US dollars in profit so far if they had sold their bitcoins today.
What do you guys think about BTC investments? Feel free to share your thoughts in the comments. Have a great weekend!