MicroStrategy buys $6 million worth of 301 bitcoins despite the market crash

    Once more, MicroStrategy has succeeded. The Virginia-based enterprise software provider added 301 more Bitcoins to its balance sheet, totaling almost $6 million. A filing with the Securities and Exchange Commission (SEC) of the United States revealed on Tuesday that MicroStrategy spent roughly $6 million to buy 301 Bitcoins (BTC) between August 2 and September 19.

    According to the filing, the software company that Michael Saylor, a businessman and supporter of Bitcoin, co-founded bought the most valuable bitcoin at an average cost of $19,851 per coin. The business hasn’t made a transaction since purchasing 480 Bitcoins for almost $10 million in June.

    According to an 8-K filing with the SEC, MicroStrategy, best known as the largest corporate purchaser of Bitcoin, now owns about 130,000 of them after paying a total of $3.98 billion for them. The company had previously disclosed on September 15 that it intended to sell up to $500 million worth of class A common stock and use the proceeds to purchase further Bitcoins.

    In order to concentrate more of his efforts on Bitcoin, Saylor left his position as the company’s CEO in August and moved into a new position as executive chairman.

    What Is the Bitcoin Business Model for MicroStrategy?

    The fact that MicroStrategy owns more Bitcoin than any other publicly listed firm is well recognised. The Virginia-based business analytics company had 129,218 Bitcoins as of June 14—more than twice as many as Tesla, the next-largest Bitcoin holder.

    Because of his strong faith in the potential of the leading cryptocurrency, MicroStrategy’s creator borrowed $205 million from Silvergate Bank to purchase $190 million worth of Bitcoin in April. However, the already-tumbling cryptocurrency market has subsequently entered a free slide.

    In August 2020, MicroStrategy paid $250 million for its first 21,454 Bitcoins, citing concerns that the US currency will depreciate as a result of the Covid-19 outbreak, government stimulus expenditure, and international political unrest.

    Everyone enters the cryptocurrency market with the intention of making money, but not everyone succeeds. Because they do not fully comprehend how to generate money with cryptocurrencies, a lot of people either give up along the road or lose money.

    However, MicroStrategy is aware of the fundamentals of generating money with Bitcoin investments. MicroStrategy has been making investments in the biggest cryptocurrency despite the market collapse. Phong Le, CEO of MicroStrategy, stated in January that the business’s approach to Bitcoin has been to acquire and keep for the long term (for at least ten years and more). The business has been investing money in bitcoin by using extra cash flow or by seeking other ways to raise it.

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