Crypto investment firm, MicroStrategy, is increasing its bitcoin holdings as part of its corporate strategy by purchasing 8,957 BTCs in Q3 of 2021.
MicroStrategy Will Keep Buying More BTC
The news of the latest BTC purchase was announced on the MicroStrategy quarterly financial results. The coins were acquired at an average rate of $46k, which totals the buying price of around $420 million. At bitcoin’s current rate of approximately $60K (at the time of reporting), the new addition amounts to around $543 million. The investment has already been accounted for with a $123 million profit.
The announcement also clarified that the company intends to continue increasing focusing on Bitcoin investments through excess cash flows and debt and equity transactions as part of its corporate strategy. As MicroStrategy CEO and long-time BTC champion, Michael Saylor points out,
“We will continue to evaluate opportunities to raise additional capital to execute on our Bitcoin strategy.”
Saylor has been vouching for bitcoin in ways other than buying and holding. As a part of the Bitcoin Mining Council, Saylor has called for sustainable practices of bitcoin mining. Saylor has also touted BTC investments to be a better hedge against inflation compared to gold. His own statements and activities regarding bitcoin indicate that MicroStrategy is not going to be backing away from the crypto any time soon.
Microstrategy Doubles ROI
Other than BTC acquisition and holding, the company is also channeling its energies into developing an enterprise analysis business intelligence segment.
MicroStrategy’s total bitcoin holding has tripled from Q3 2021, going from 38,250 to 114,042 BTCs, which cost around $3.2 billion, with a carrying value of $2.4 billion. However, the market value of the holdings comes close to the $5 billion mark.
The average price of each Bitcoin at the time of purchase was $27,713, inclusive of all fees and expenses. Leveraging the anticipation before the launch of the ProShares Bitcoin ETF, MicroStrategy doubled its Bitcoin investment to a total of $6.7 billion. As the price of BTC crossed the much-awaited $60k mark, the company’s investment value doubled from the aggregate buying price of $3.16 billion.
The smart investment move from the company has led to the value of its shares shooting up nearly 85%. With the first Bitcoin ETF in the US now officially approved and launched, the industry is hopeful that more will follow suit, thereby increasing the value of Bitcoin.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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