MicroStrategy, an enterprise business intelligence (BI) application software vendor popularly known for its bitcoin buying frenzy has further dipped its hands into the crypto jar as it ends the year with yet another purchase as the market dips.
The fortune 500 company headed by Bitcoin enthusiast CEO, Michael Saylor added an additional 1,914 Bitcoins at an average cost of $49,229 per Bitcoin which led to a total of $94.2 million. This report was made public by the company’s CEO, Michael Saylor through his Twitter on December 30, 2021.
“MicroStrategy has purchased an additional 1,914 bitcoins for ~$94.2 million in cash at an average price of ~$49,229 per #bitcoin. As of 12/29/21 we #hodl ~124,391 bitcoins acquired for ~$3.75 billion at an average price of ~$30,159 per bitcoin. $MSTR”
— Michael Saylor⚡️ (@saylor)
According to an article by StreetInsider, it was reported that between December 9, and December 29, 2021, the company had issued and sold its shares for a net proceeding of $94.2 million which was in turn used to purchase 1,914 Bitcoins within the same period.
The company’s decision to go all out in its holding of Bitcoin is met with mixed reactions as some people are worried that the whale’s possible decision to shift the method of the reserve may lead to a massive dip that may be destructive to the market. Others have considered the method as being too risky as Bitcoin is a volatile asset.
As of the time of press, MicroStrategy holds over 2% of Bitcoin’s total supply. According to data on StockAnalysis.com, the company’s stock recorded +51.69% over 52 weeks. Will the decision by MicroStrategy to have such large portions of its assets in Bitcoin be a move that puts it ahead in the near future or will it be a move that tanks its stock, leading to crippled finances? Time will tell, and so would we.