Bitcoin

MicroStrategy Buys Another $90M+ of Bitcoin, Boosting Stake to 124,391 BTC

MicroStrategy Buys Another $90M+ of Bitcoin, Boosting Stake to 124,391 BTC

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.

© 2022, Eva Fox | Tesmanian. All rights reserved.

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Article edited by @SmokeyShorts, you can follow him on Twitter


About the Author

Eva Fox

Eva Fox

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.

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