MicroStrategy’s bitcoin investment reaches $7 Billion
Bitcoin is currently trading at approximately $61,000. MicroStrategy now owns $7 billion worth of the leading cryptocurrency on the market.
According to MicroStrategy’s third-quarter financial results, published this Thursday (28), the company spent a total of $3,160 billion to acquire bitcoins, at an average cost of approximately $27,713 per currency.
MicroStrategy began exploring bitcoin as an investment in 2020, when the company made its first acquisition of $425 million. By the end of 2020, MicroStrategy’s bitcoin allocation had exceeded $1.125 billion.
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In February of this year, the company made headlines again when it acquired 19,452 BTC, equivalent to $1.026 billion, increasing its investments in bitcoin to approximately $4.5 billion.
Since then, MicroStrategy has been adding more and more bitcoins to its balance sheet. CEO Michael Saylor, one of bitcoin’s staunchest proponents, has made it clear that the company never plans to sell its investments.
MicroStrategy’s bitcoin investments have also inspired institutional investors like Raoul Pal and companies like Square and Tesla to do the same.
In December of last year, Saylor had publicly advised Elon Musk to convert Tesla’s balance sheet to bitcoin, suggesting the move would be a “$100 billion favor.”
Two months later, in February 2021, Tesla made his record $1.5 billion investment in bitcoin.