On Tuesday, MicroStrategy submitted a filing to the United States Securities and Exchange Commission (SEC) indicating that the firm has taken an additional $10 million position in bitcoin:
"On February 2, 2021, MicroStrategy Incorporated (the “Company”) announced that it had purchased approximately 295 bitcoins for $10.0 million in cash, at an average price of approximately $33,810 per bitcoin, inclusive of fees and expenses."
Bitcoin currently trades above $36,000 as per BTCTimes data, having broken out of its recent range around the lower 30,000's.
With this latest purchase, MicroStrategy now holds approximately 71,079 bitcoin, purchased at an average price of $16,109, including fees. These holdings are currently worth over $2.5 billion, making MicroStrategy the largest public holder of the cryptocurrency, according to data from BitcoinTreasuries.
The purchase is in line with the firm's policy to take cash it has on hand and allocate it to Bitcoin.
MicroStrategy's purchase comes shortly after Ruffer, a U.K. investment firm, revealed that it has scaled out of its Bitcoin position by booking a $650 million profit.
MicroStrategy's decision to shovel more U.S. dollars into Bitcoin comes as Michael Saylor, CEO of the company, has been pushing corporate America to follow him.
He told CNBC in January that he is having thousands of executives and officers of top companies at a conference discussing how they can get involved in Bitcoin:
We’re going to have thousands of executives, officers…directors, & advisors of corporations coming together in the first week of February. They all want to figure out how to plug bitcoin into their balance sheet or their P&L…We’re going to open source it.
It is believed that corporations have yet to allocate their treasuries to Bitcoin en-masse because there are legal, security, and often also financial uncertainties about the investment.