Through the beginning of the second quarter of 2023, MicroStrategy kept adding Bitcoin to its portfolio; the most recent additions increased the holding’s worth to about $4 billion. After buying 6,455 bitcoins for $150 million on March 27, Microstrategy has started buying bitcoin (BTC) once more.
According to a top crypto news website, the company disclosed that between March 24 and April 4, it had spent $23.9 million to buy 1,045 coins. In addition to mentioning the purchase to his 3 million Twitter followers, MicroStrategy CEO Michael Saylor added that the average price of a bitcoin was $28,016.
Saylor tweeted on Wednesday, “Microstrategy has acquired an additional 1,045 bitcoin for approximately $29.3M at an average price of $28,016 per bitcoin.” As of 4/4/2023, Microstrategy possesses 140,000 bitcoin, which it purchased for almost $4.17 billion, or $29,803 per bitcoin.
Since its launch in 2009, Bitcoin has been a hot subject of discussion. Bitcoin’s latest news and prediction anticipate that Bitcoin will continue to grow over time, which is why MicroStrategy is constantly updating its Bitcoin collection.
The most recent actions increased the 6,455 bitcoins the business purchased over a five-week period between February 16 and March 23.
The software giant now owns 140 000 bitcoin, which it paid $4.17 billion for on average at a price of $29,803 per virtual currency. The worth of its stock was about $3.94 billion, with Bitcoin trading at $28,170 on Wednesday.
While MicroStrategy has been actively purchasing Bitcoin, the price has skyrocketed since the year’s beginning. The price has increased by about 67% so far this year after a disastrous 2022 that saw a 63% decline.
During the industry’s maze of failures last year, which included the high-profile failure of cryptocurrency exchange FTX, the fall of stablecoin TerraUSD, and insolvency cases for some crypto companies, the overall market value for cryptocurrencies dropped below $1 trillion.
Since then, it has increased, reaching $1.2 trillion as of Wednesday. 0.62% of all Bitcoin (BTC) that will ever be generated is currently held by MicroStrategy.
As of April 5, 2023, MicroStrategy owned 140,000 bitcoins. The overall cost of the bitcoin purchases came to $4.17 billion USD, or about $29,803 USD per bitcoin. MicroStrategy paid $190 million for 4,167 cryptocurrencies between January 15 and April 5, 2022.
The company’s plan takes use of bitcoin’s position as a commodity that is exempt from the wash-sale laws for securities, which require a seller to hold off on repurchasing an investment for 30 days before recording a tax loss. The gain might be substantial in the case of MicroStrategy’s Bitcoin holdings.
The company’s stock fell 74% in 2021 as a result of the 64% decline in Bitcoin. According to statistics gathered by Bloomberg, MicroStrategy finished the year with $43.8 million in cash, the least sum in at least 40 quarters. Saylor had $531 million in cash on hand before it began buying Bitcoin in 2020.
With 40,000 BTC, Galaxy Digital is the publicly listed business with the second-largest holding of Bitcoin. The amount of bitcoins owned by Microstrategy is the same as that of Block. one and is 1,686 BTC less than the amount of Mt. Gox bitcoins held by the Tokyo bankruptcy court trustee. Since August 2020, Microstrategy has been buying bitcoins and has been using the dollar-cost averaging (DCA) investing strategy.
