MicroStrategy Purchases 205 Bitcoin for $10 Million in Cash

U.S. major bitcoin corporate backer MicroStrategy Inc announced on Friday that it has made another aggressive purchase of bitcoin worth $10 million in cash despite the market uncertainty on Thursday.

In a tweet, MicroStrategy’s CEO Michael Saylor announced the company’s latest million-dollar worth of bitcoin purchase. He revealed the latest bitcoin acquisition in the post with a link to a Form 8-K Securities and Exchange Commission (SEC) filing registered on March 5, 2021.

According to the enterprise software and bitcoin holder, it paid approximately $48,888 in cash for each bitcoin, including fees.

Adding the new acquisition to its already substantial holdings of cryptocurrency, the company now owns about 91,064 bitcoin as of March 5. The total cost basis of the software firm’s bitcoin is now $2.196 billion, with an average purchase price of about $24,119 per bitcoin.

Within the past few days, the price of bitcoin has dropped significantly, with its cost ranging between $48,000 and $50,000. Several experts saw MicroStrategy’s move as a strategy of purchasing more bitcoin whenever it hits below the $50,000 mark.

The firm has been steadily pulling off multiple aggressive purchases of the digital currency in 2020 after making its first investment in August as bitcoin soared in value.

On March 1, MicroStrategy also purchased 328 bitcoin for about $15 million in cash.

The shares of the software company dropped 1 percent in the pre-market trading.

© Fourth Estate® — All Rights Reserved.
This material may not be published, broadcast, rewritten or redistributed.