Photo: Klaus Ohlenschläger / Picture Alliance / Global Look Press
The purchase of Bitcoin by large companies is becoming more and more popular. Business intelligence company MicroStrategy announced the acquisition of 19,452 Bitcoins worth $1.026 billion. The company now owns 90,500 Bitcoins, with a current market value of about $4.66 billion. On average, one Bitcoin cost MicroStrategy $23,985.
The company first invested in Bitcoin in 2020, spending $425 million on the cryptocurrency in August and September. By November, the amount MicroStrategy had invested in Bitcoin exceeded $500 million. In December, the company acquired another $650 million, which was followed by two more investments of $10 million each. This increased the number of Bitcoins owned by MicroStrategy to 71,079.
MicroStrategy CEO Michael Saylor has become one of the main advocates of Bitcoin since the company began investing in cryptocurrency. When MicroStrategy announced its first purchase of bitcoins, it stated that the company recognized it as a legitimate investment asset that could outperform cash. Since then, MicroStrategy has even started running online courses designed to equip companies with cryptocurrency knowledge.
"We believe our Bitcoin strategy, including our Bitcoin holdings and related activities in support of the Bitcoin network, is complementary to our software business by enhancing awareness of our brand and providing opportunities to secure new customers," said Saylor.
Since the purchase, Saylor has repeatedly referred to Bitcoin as digital gold, and last December publicly advised Elon Musk to convert Tesla's balance sheet to Bitcoin, suggesting the move would bring in $100 billion.
Are such large transactions even possible?— Elon Musk (@elonmusk) December 20, 2020
In February, Tesla announced that it had updated its investment policy to give itself more flexibility to further diversify and increase the return on its cash, and in turn acquired $1.5 billion in Bitcoin cryptocurrency.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.