MicroStrategy Expands Bitcoin Portfolio: A Dive into Corporate Cryptocurrency Investments

MicroStrategy’s Latest Bitcoin Acquisition Explained

In a bold move, MicroStrategy has taken another leap into the cryptocurrency rabbit hole, announcing an acquisition of 5,050 Bitcoin (BTC) for a staggering $242.9 million. That breaks down to an average of around $48,099 per coin. It seems their love affair with Bitcoin isn’t fading anytime soon!

Adding to the BTC Treasure Trove

Not only has MicroStrategy been on a buying spree, but according to their Form 8-K filing with the U.S. Securities and Exchange Commission, they also added 8,957 BTC to their coffers in Q3 2021. Talk about accumulating a crypto treasure chest—this makes for a grand total of roughly 114,042 BTC, costing the company around $3.16 billion. Current valuations? Over $5 billion, which might make some investors giddy!

The Numbers Behind the Purchase

Let’s do some quick math (without using a calculator, of course): MicroStrategy’s Bitcoin costs about $27,713 per BTC when considering fees and a variety of expenses. Quite the investment, huh? You might be wondering, “Why go deeper in when the market seems shaky?” But MicroStrategy’s CEO Michael Saylor maintains that their appetite for Bitcoin remains unsatiated despite some paper losses in Q2—and who doesn’t enjoy a good old-fashioned rollercoaster ride?

MicroStrategy: The Bitcoin Prophet?

Since taking the plunge into Bitcoin back in August 2020, MicroStrategy has morphed into the largest corporate holder of Bitcoin among publicly traded companies in the United States. Saylor has emerged as a crypto evangelist, frequently urging fellow U.S. firms to hop on the Bitcoin bandwagon. His motto could practically be, “Go big or go home!”

The Market Reaction

But timing is everything. The announcement of this large acquisition comes as Bitcoin has seen a price decline—almost 3% down in the last 24 hours alone. Concurrently, the total cryptocurrency market cap took a hit, dropping over 4% as token values tumbled. With such volatility, one must wonder: Is MicroStrategy riding the wave or just hoping for a lucky sea breeze? Only time will tell.