American business intelligence and software developer, MicroStrategy Incorporated (NASDAQ: MSTR) has made an additional purchase of 229 units of Bitcoin (BTC) for a sum of $10 million. The company’s latest move was announced on Twitter by its Chief Executive Officer Michael Saylor.
MicroStrategy has purchased an additional 229 bitcoins for $10.0 million in cash at an average price of ~$43,663 per #bitcoin. As of 5/18/2021, we #hodl ~92,079 bitcoins acquired for ~$2.251 billion at an average price of ~24,450 per bitcoin. $MSTRhttps://t.co/fU6LN4WbKI
— Michael Saylor (@michael_saylor) May 18, 2021
Since the firm announced its first Bitcoin purchase back in August 2020, as well as its embrace of the digital currency as its Treasury Reserve Asset (TRA), it has not relented in adding to its Bitcoin reserves. The initial purchase of 21,454 BTC worth $250 million, inclusive of fees and expenses at the time has now skyrocketed through the addition of new units to 92,079 BTC.
As noted by Michael Saylor, the total BTC holdings by the firm were acquired for approximately $2.251 billion, at an average price of $24,450. Based on the current price of the BTC at $43,891.10 at the time of writing, the company’s BTC holdings are now worth more than $4.04 billion.
Michael Saylor has always maintained a positive stance when it comes to the potential superiority of Bitcoin as a store of value and a hedge against inflation. Beyond MicroStrategy, Saylor has taken up the stance of a BTC evangelist with a defined mission to help corporations preserve their balance sheets using Bitcoin investments. He obviously leads by example.
MicroStrategy BTC Purchase: Taking Advantage of Price Fall
The general rule of thumb for making an investment in the digital currency ecosystem, and any market at that is to buy low, and sell when prices are high. Nobody appears to understand this rule more than MicroStrategy as the company is known for scooping up BTC just when the market is seeing a broad range retracement.
The global cryptocurrency industry, led by BTC has been experiencing a downturn since Elon Musk unveiled that Tesla Inc (NASDAQ: TSLA) will stop accepting Bitcoin payments for its electric cars due to the cryptocurrency’s high energy consumption. Based on this bearish fundamental news, BTC has dropped from a high of $57,939.36 to a low of $42,207.29 in the past 7-days. This erratic price fluctuation presented a great advantage for Saylor to make the purchases.
Just a few days ago, the company bought 271 units of Bitcoin at an average price of $55,387, a move that is now complemented by the latest purchase. There seems to be no indication the Virginia-based firm is stopping its BTC accumulation anytime soon. The recovery of the Digital asset back to its all-time high above $62,000 will return impressive gains to the firm, a bullish projection bound to impact the valuation of its shares.