Business intelligence and software company MicroStrategy's Bitcoin investment has increased to a total of 40.824 BTC, with its most recent bitcoin purchase worth $50 million.
MicroStrategy is, so far, one of the largest institutional investors that has seen Bitcoin (BTC) this 2020. In August of this year, the company announced the investment of $250 million of its cash hoard in the cryptocurrency, when the value of Bitcoin was hovering around $11.600 USD per unit. Then, a month later, the company announced a second investment in Bitcoin, for a total of $175 million invested in the cryptocurrency by mid-September.
Now, MicroStrategy is back in action, revealing its third investment in Bitcoin, this time worth $50 million, just as the cryptocurrency's price on the markets was hovering around $19.400 USD per unit.
Michael saylor, founder and CEO of MicroStrategy, was the one who announced this new investment through his Twitter account. Saylor published a notification to the United States Securities and Exchange Commission (SEC) and noted that the company invested $50 million to purchase 2.574 BTC, as part of its Treasury Reserve Policy.
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40.824 BTC in MicroStrategy's coffers
“We now have approximately 40.824 bitcoins”, were Saylor's statements in his most recent publication. The CEO of MicroStrategy has revealed in numerous interviews that the company's main motivation for investing in Bitcoin is the belief that the cryptocurrency has great potential as a store of value and investment asset, capable of appreciating significantly in the long term; but also that it represents a financial revolution and innovation, providing a viable and accessible alternative for millions of people who do not have access to the traditional financial system, or who simply want to manage their own funds.
«Bitcoin is not a currency, nor is it a payment network. It is a bank in cyberspace, run by incorruptible software, offering a global, affordable, simple and secure savings account to billions of people who do not have the option or desire to run their own hedge fund.»
With the 3 investments made by MicroStrategy in Bitcoin, the company now manages a total of 40.824 BTC, worth over $775 million, according to the current price of the cryptocurrency at the time of writing.
At the time of its third investment, MicroStrategy revealed that it acquired BTC at an average price of $19.427 USD per unit, while the price of Bitcoin currently ranges between $19.000 and $19.100 USD. However, the slight drop in the price of Bitcoin since MicroStrategy's purchase at the time of this writing does not seem to be of importance to the company, whose objective is not only to accumulate bitcoins, but also to develop and offer innovative products based on this cryptocurrency that will grow its commercial offer to clients and investors.
Bitcoin vs Traditional Products and Services
Saylor has pointed out that Bitcoin's appreciation potential is one of the main reasons why the company decided to invest in the cryptocurrency, and the numbers can confirm this belief. In late September, the company published a report with the financial results of the third quarter of its fiscal year 2020.
In this report, Saylor revealed the significant influence of Bitcoin in achieving one of the strongest quarters for the company seen in years, offering the possibility of greater return potential for investors that would not have been achieved if the company had kept its treasury reserve in cash.
Likewise, a private investigator conducted an analysis detailing, at the end of October, that MicroStrategy's earnings in Bitcoin over the last two months, which at that time had about 38.250 BTC in its coffers, were higher than the company's earnings over the last 3,5 years, from the sale of its software products and services.
At the time of publication, researcher Kevin Rooke revealed that MicroStrategy's profits were $100 million in those 2 months, when the price of Bitcoin was hovering around $13.500 and $13.900 USD.
The value of shares on the stock market is growing
MicroStrategy stock has grown by nearly 150% since the company announced its first investment in Bitcoin. At that time, MicroStrategy (MSTR) shares on the NASDAQ were valued between $120 and $130 USD, while at the time of this writing the stock is valued at $328 USD.
Source: Investing.com
Saylor, in addition to being a proponent of Bitcoin as an asset with the potential to protect the assets of investors and companies, also considers Bitcoin an excellent option for his personal finances. The CEO of MicroStrategy revealed By the end of October, he was the owner of over 17.700 BTC, which he purchased for an average of $9.900 USD. As of today, Saylor’s Bitcoin holdings are worth approximately $337 million.
Continue reading: MicroStrategy continues to bet on Bitcoin and transforms part of its reserve into BTC
