The Bitcoin Acquisition Chronicles of MicroStrategy
MicroStrategy is turning into the Bitcoin Santa Claus of the corporate world, and it’s only March! CEO Michael Saylor recently announced an additional purchase of 328 Bitcoin worth around $15 million, which breaks down to an eye-watering average price of $45,710 per coin. This fresh acquisition brings their treasure trove to a staggering total of 90,859 Bitcoins—worth approximately $4.3 billion at the current Bitcoin price. Talk about an impressive haul!
Decoding the Dollar-Cost Averaging Strategy
Despite the recent purchases at a high price, MicroStrategy has been smart about its Bitcoin strategy. Since the beginning of this Bitcoin buying spree, it has employed a dollar-cost averaging technique. This means they’ve slowly and steadily placed their bets on Bitcoin over the past five months, managing to lower the average purchase price of their holdings to around $24,063 per coin. Who knew that financial markets could be so methodical and not just a chaotic guessing game?
A Brief History of MicroStrategy’s Bitcoin Buying Spree
To truly appreciate MicroStrategy’s journey into the crypto land, we must unwind to August 2020. It was then that Saylor decided to make a significant leap by investing $250 million in Bitcoin, landing them with 21,454 coins. Fast forward to December 2020, and they had amassed over 70,000 coins! It’s like watching a financial snowball gather momentum—each month, its size increases, and so does the excitement!
Future Plans: Where Does MicroStrategy Go from Here?
With an appetite for more Bitcoin, MicroStrategy announced plans to raise an additional $900 million for future purchases. They exceeded expectations, ultimately gathering over $1 billion, which was used to snap up 19,452 more coins last Wednesday. In total, their investment in Bitcoin has reached $2.18 billion, but if Bitcoin prices fluctuate in their favor, they could technically net over $2 billion in just five months. However, selling is not on Saylor’s agenda; he has stated that Bitcoin acquisition is one of the two core missions of the firm.
The Conclusion: A Bold Bet on Bitcoin
As MicroStrategy forges ahead into its Bitcoin journey, it’s clear that they’re making a philosophical statement about the future of corporate treasury management. They’re not just dabbling; they’re diving in headfirst. With the digital currency market still in flux, it’ll be intriguing to see if Saylor’s bet pays off in the long run or if they’ll find themselves in a precarious position come the next market plunge. For now, it looks like Saylor and his team are all about that #HODL life!
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