NASDAQ-Listed MicroStrategy Buys $175 Million More Worth Of Bitcoin

Bitcoin 8 27 2020 LearnCrypto Powered By Wyckoff SMI 2024

The NASDAQ-listed company providing business intelligence and mobile software MicroStrategy has added $175 million worth of Bitcoin to its portfolio. The addition comes just a month after the firm purchased $250 million of the primary cryptocurrency.

MicroStrategy Doubles Down On Its Bitcoin Accumulation

As CryptoPotato reported a month ago, the Virginia-headquartered company developing software to analyze internal and external data for making better business decisions purchased 21,454 bitcoins worth $250 million.

This was part of MicroStrategy’s two-way capital allocation strategy, which saw the firm also buying $250 million worth of stocks. At that point, company CEO and founder Michael Saylor said that Bitcoin’s unique qualities make the asset a hedge against inflation and brought up Bitcoin’s impressive ROI over the past decade.

On September 11th, MicroStrategy said in a filing to the Securities and Exchange Commission (SEC) that it’s planning to purchase more of the primary cryptocurrency.

Earlier today, Saylor confirmed that his company had bought 16,796 more bitcoins (worth $175 million). Consequently, MicroStrategy’s portfolio now consists of 38,250 bitcoins at an “aggregate purchase price of $425 million, inclusive of fees and expenses.”

It’s worth noting that in a month, MicroStrategy has purchased nearly 0.2% of all bitcoins to ever exist as the cryptocurrency’s maximum supply is capped at 21 million coins.

BTC As The Primary Treasury Reserve Asset

In the filing with SEC, the company’s board of directors doubled-down on the narrative that Bitcoin serves as the firm’s “primary treasury reserve asset on an ongoing basis, subject to market conditions and anticipated needs of the business for Cash Assets, including future potential share repurchase activity.”

Interestingly, MicroStrategy’s stocks (MSTR) have increased in value following Saylor’s confirmation. In the first few hours after Wall Street opened its trading doors today, MSTR has surged by 3.5% to $147.

On a year-to-date scale, the company’s shares peaked at above $150 in February before plummeting to $90 during the COVID-19-enticed crisis. With today’s increase, MSTR is nearing its highest yearly point.

Author: Jordan Lyanchev

Related Articles