When MicroStrategy bought its previous huge chunks of Bitcoin in the early part of this year, one would have thought the company wanted to make a quick profit. As it has turned out, the investment funds firm is not here for the short term profits.
Making its case for supporting Bitcoin in the long run, MicroStrategy has again purchased another huge chunk of Bitcoin to add to its already rich reserves. According to recent news, the firm was said to have bought nothing less than $50 million Bitcoin as it capitalized on the price of the digital asset going under $19,000 to make its latest purchase.
Analysts see the latest move as a bold step for MicroStrategy
Going by several reports in the past few weeks, MicroStrategy boss Michael Saylor has reiterated his hunger and desire to buy more Bitcoin. With this recent purchase, one can agree that not only is MicroStrategy a Bitcoin supporter, the firm is also a Bitcoin hoarder. According to a recent document published by the United States Securities and Exchange Commission, the firm finalized and made payments as it again cupped another massive amount of Bitcoin.
In the published report, MicroStrategy was said to have paid around $19,427 per Bitcoin and bought a total of 2,574 Bitcoins. Analysts have seen MicroStrategy’s move as a very bold one. The company made this recent purchase close to a period where Bitcoin just touched its all-time high figure and many predictions of a price correction.
With its recent purchase, MicroStrategy is now proud owners of nothing less than 40,824 Bitcoin, which is worth close to $500,000. Before this purchase, MicroStrategy made two massive purchases of Bitcoin this year alone, buying 21,454 Bitcoin worth $250 million in August before coming back to purchase another 21,454 Bitcoin worth $250 million in the middle of September.
MicroStrategy is now the public traded investment with most Bitcoin holdings
A look at this new purchase from a layman’s perspective will look as though MicroStrategy is making some drastic decisions. A closer look into the company’s shares will show the real reason why the company chose to stack up its Bitcoin reserves. Going by the records of the company’s shares price, one can notice that it has moved from a region of $120 before the announcement and sells for about $360 some days ago.
Presently, each of the company’s shares now sells for about $328 as MicroStrategy has no leapfrogged other companies that are trading publicly and have their wealth invested in digital assets. As it stands now, the company has twice as many as the number of Bitcoin holding that its closest rival has in the digital asset. Galaxy Holdings is the second public trading company with most shares in Bitcoin as it holds nothing less than 16,651 of the digital asset in its reserves, with square coming close in third place with a Bitcoin holding of about 4709.
Taking to social media, the CEO of MicroStrategy, Michael Saylor, confirmed that the company had purchased another chunk of Bitcoin. Going by the CEO’s announcement, it looks like MicroStrategy will not relent as it might purchase more of the digital asset in the future. Also, MicroStrategy is diving into the blockchain sector as the firm already confirmed the installation of its first Bitcoin node.
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