HomeNEWSMicroStrategy buys additional 1,045 BTC

MicroStrategy buys additional 1,045 BTC


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Renowned business intelligence company, MicroStrategy has purchased additional 1,045 BTC. This development was confirmed in a Twitter post by its executive chairman, Michael Saylor on Wednesday. According to Saylor, the firm purchased the largest crypto by market cap at an average value of $28,016. By virtue of this, MicroStrategy paid $29.3 million as total payment for the 1,045 BTC.

Certainly, this development means MicroStrategy now holds a total of 140,000 BTC, equivalent to $4.17 billion. The first purchase from the firm came in late 2020. Ever since, it has been a consistent buyer of the token. Just last month, the American firm purchased 6,455 BTC for $150 million at an average price of $23, 238. Notably, MicroStrategy’s consistency about the crypto signifies its commitment and belief in the long-time potential of BTC.

Insights into the purchase of BTC by MicroStrategy

Worthy of note that its latest BTC acquisition is coming barely six months after it sold its aggregated class A common stock to Cowen and Compay, and BTIG. In the then filing to the Securities and Exchange Commission (SEC), MicroStrategy said the sell-off was worth $500 million. The company informed SEC of its plan to leverage the funds to acquire more BTC.

Recall that following the downturn that greeted the crypto market in 2022, MicroStrategy lost a huge amount in value of its BTC holdings. According to findings. the firm lost BTC, worth about $1 billion in its reserve. So, it believed the sale of its aggregated class A common stock would enable it buy the dip to boost its BTC reserve. Now, with its latest acquisition of BTC, it is correct to say the firm is actualizing its aim.

Today, MicroStrategy has established itself as one of the prominent institutional investor in BTC. The co-founder of the firm, Michael Saylor is a big admirer of the crypto asset and has, over time, reaffirmed his support to the token. Saylor believes in the potential of BTC to completely disrupt the existing financial system.

Recently, the firm repaid its $205 million loan to Silvergate, a renowned US bank that is currently ravaged in crisis. In its 8-k filing with the US regulator, MicroStrategy claimed it repaid the loan at a 22% discount. Earlier, a subsidiary of the firm had obtained the loan from Silvergate under its exchange network leverage program. According to findings, Silvergate collateralized the loan with some BTC owned by MicroStrategy with a maturity date of March, 2025.

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Dare Ibitoye
Dare Ibitoye
Over the years, Dare has been a committed reporter in the field of cryptocurrencies. He is also interested in researching about the innovative projects within the blockchain space. During his spare time, Dare loves to listen to music and read about technological trends in the contemporary world

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