Nasdaq-listed firm MicroStrategy, the enterprise software company known for its aggressive Bitcoin investment strategy, has further solidified its position as a major player in the cryptocurrency space by adding an additional 9,245 BTC for $623 million, bringing its total holdings to over 1% of BTC’s supply.
In a filing with the U.S. Securities and Exchange Commission on Tuesday, the company revealed its second multi-million dollar Bitcoin purchase in just over a week, which brought its total Bitcoin holdings to 214,246 BTC. The company financed the purchase primarily through the sale of convertible notes, similar to its previous Bitcoin acquisition of $821.7 million announced last week.
MicroStrategy’s foray into Bitcoin began in 2020, driven by Chairman and Co-founder Michael Saylor’s view of the digital currency as a hedge against inflation and a preferable alternative to holding cash.
With this recent purchase, the company now boasts a Bitcoin treasury valued at over $14 billion that was acquired for around $7.53 billion at an average price of $35,160 per BTC. The flagship cryptocurrency is currently trading at $64.750 after falling more than 9.5% over the past week after hitting a new all-time high above $73,400.
Bitcoin’s capped supply of 21 million coins adds another layer of intrigue to MicroStrategy’s strategy. With around 19.7 million tokens already issued, the company’s holdings represent a significant portion of the total supply that will ever be available, estimated to be reached by the year 2140.
As CryptoGlobe reported, short sellers who have wagered against the company have so far this year incurred an estimated $3.3 billion in losses, as the company’s BTC holdings are so large its stock price moved up significantly along with the cryptocurrency’s price this year.
MicroStrategy, now openly identifying itself as a “Bitcoin Development Company,” could keep on buying Bitcoin. Its Exectuvie Chairman and Co-Founder, Michel Saylor, has dismissed concerns about increased competition for acquiring Bitcoin and suggests the firm is well-positioned to benefit from the digital transformation of capital from traditional, analog systems to the digital economy.
Saylor passionately argued that Bitcoin has emerged as a trillion-dollar asset class, comparing its significance to that of major technology companies like Apple, Google, and Microsoft.
However, he noted that Bitcoin, unlike these companies, represents an entire asset class capable of accommodating vast amounts of capital, and added he sees it competing against traditional stores of value like gold, the S&P 500, and real estate, projecting that capital will continue to migrate from these asset classes into Bitcoin due to its technical superiority.
Featured image via Unsplash.
