MicroStrategy made another Bitcoin purchase, this one for over $90 million. Now, the company's reserves are 124,391 Bitcoins.
MicroStrategy bought about $100 million worth of Bitcoin just this month. Between December 9-29, they bought 1,914 Bitcoins worth $94.2 million in cash at an average price of $49,229 per bitcoin.
After the new purchase, their total reserves are 124,391 Bitcoins, worth $5.9 billion at the current price. The total investment cost for MicroStrategy is $3.75 billion at an average price of $30,000 per 1 BTC. Thus, the company has already made a profit of $2 billion.
The company is most likely using a Dollar Cost Averaging (DCA) approach when buying during downturns. Sometimes they can buy at a high and sometimes at a low price, averaging the cost, instead of trying to adjust to the market. MicroStrategy also allocates a certain amount of their profits to Bitcoin, which they hold as a reserve asset in their treasury reserves, making this the first company to take this approach.
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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.