More than five thousand further Bitcoins have been added into the company’s portfolio by Microstrategy. The overall Bitcoin holding is now consisting of 114,102 numbers of BTCs.
Bitcoin could be expensive for the majority but not for Microstrategy. When the world was confined within their houses during the outbreak of the Covid-19 pandemic, Microstrategy was investing in Bitcoin. Even when people underestimated the future projected value of Bitcoin, Microstrategy had full faith in Bitcoin. In less than 2 years’ time, Microstrategy had invested enough which resulted in the company holding more than 100K units of Bitcoins.
But even that was not the Microstrategy’s destination, in fact, the company wanted to secure much more than what it already had. It is undoubtedly a Bitcoin investment company that can be regarded as a “pro-Bitcoiner”. Michael Saylor, Microstrategy’s CEO, informed today that Microstrategy had spent US$ 243 Million for the purchase of 5,050 units of Bitcoin. All the payment was done in cash, told Saylor. He also apprised that a single piece of Bitcoin cost Microstrategy US$ 48,099. Now the company’s holding of Bitcoin contains exactly 114,042 BTCs.
Microstrategy started to invest in Bitcoin when the value of Bitcoin was under US$ 10,000. Almost 70% of Microstrategy’s Bitcoins were purchased during the period when the value of Bitcoin was less than US$ 10,000. According to Saylor, if the average purchase value is to be drawn, then it would reveal that against each unit of Bitcoin, the company had paid only US$ 27,713 per coin.
Before making the purchase, the company was also informed about its intention to purchase additional Bitcoins to Securities & Exchange Commission. It was mentioned in SEC filing that during the period July-September, 2020, Microstrategy spent US$ 420 Million against the purchase of 8,957 Bitcoins. This amount of US$ 420 Million was inclusive of the fees, taxes, and other levies revealed SEC filing.
After making the announcement, Saylor also revealed that his company was going to make a big blunder. However, it accidentally avoided the mistake which would have caused a multi-billion dollar loss to the company. When someone asked Saylor about the mistake, he said that the company had the extra cash and wanted to invest that in something. Preferably, the company wanted to invest in Bitcoin as usual. However, the company’s interest was drawn towards investing in gold. He said that he is glad that the company did not put the money into gold otherwise that would have caused a huge loss.
He then informed that the decision to invest in gold was turned down by the majority. Eventually, it was decided to put the money into Bitcoin instead of gold. Apparently, there was a major reduction in the value of gold at the time and the company’s money was saved accidentally.