By Hassan Mehmood (Saudi Arabia)
The US business intelligence firm MicroStrategy increases its holding of Bitcoin up to $425 million after a fresh injection of $175 million.
MicroStrategy’s Holdings Reaches Above $38,000 Bitcoin
MicroStrategy has successfully bought 16,796 Bitcoin for $175 million. Now, the total BTC holdings of the firm have reached to 38,250 Bitcoin worth $450 million. MicroStrategy CEO said:
“On September 14, 2020, MicroStrategy completed its acquisition of 16,796 additional bitcoins at an aggregate purchase price of $175 million. To date, we have purchased a total of 38,250 bitcoins at an aggregate purchase price of $425 million, inclusive of fees and expenses.”
As MicroStrategy is accumulating Bitcoin capital, Grayscale reacted to this and stated that it seems a completion is going on between two companies. The founder of Grayscale, Barry Silbert, said:
“Apparently there is some kind of bitcoin buying race between MicroStrategy and @Grayscale.”
Grayscale has also shown a great interest in buying Bitcoin since the beginning of 2020, especially in the COVID-19 panic period. Currently, the Bitcoin Trust of Grayscale has more than 400,000 Bitcoin which is a great amount as compared to BTC holdings owned by MicroStrategy.
New Filing for Acquiring Bitcoin
On September 14, the company informed SEC via new filing that it may invest in top digital asset Bitcoin. Due to uncertainty in the US dollar, MicroStrategy recently claimed that Bitcoin is a useful instrument against inflation as “it makes sense to shift our treasury assets into some investments that can’t be inflated away or are less likely to be inflated away.”
“Under the new Policy, treasury reserve assets will consist of (i) cash, cash equivalents, and short-term investments (“Cash Assets”) held by the Company that exceed working capital needs and (ii) bitcoin held by the Company, with bitcoin serving as the 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,” the filing stated.
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