BitcoinBusiness

MicroStrategy Buys Another 16,796 Bitcoin

Business intelligence firm MicroStrategy has all but doubled down on its initial $250 million bitcoin bet by loading up on a further 16,796 BTC, worth around $180 million at press time.

Relaying the news, MicroStrategy's CEO Micheal Saylor explained, in no uncertain terms, the addition of thousands of bitcoin in line with it's newly adopted treasury reserve strategy.

"On September 14, 2020, MicroStrategy completed its acquisition of 16,796 additional bitcoins at an aggregate purchase price of $175 million," Saylor tweeted.

After teasing a possible extension of it's already burgeoning bitcoin coffers in a recent letter to the SEC, many saw the move coming - just not quite this soon. As reported, the letter constituted a veritable nod toward extending the initial $250 million bitcoin investment, along with the formal appointment of Bitcoin as the firm's primary reserve asset. In total, the firm has now purchased 38,250 bitcoin since August this year, at an average price of $11,111.11 per bitcoin.

Doubling Down on Bitcoin

Microstrategy's affinity with Bitcoin began with the unprecedented global fiscal and monetary response to the coronavirus crisis.

Within his rationale for the novel investment strategy, Saylor noted that these macro risks would have a long-term influence on the "real value of fiat currencies and many other conventional asset types," adding emphatically that "Bitcoin is digital gold - harder, stronger, faster, and smarter than any money that has preceded it."

The firm first put its bitcoin buying tactic into motion on August 11th, purchasing 21,454 BTC, worth $250 million at the time. While it's initial Bitcoin venture has since sunken by around 7%, shares in MicroStrategy (MSTR) shares have soared by approximately 17%.

written by

Will is a freelance journalist and copywriter based in London. He's covered the crypto industry in various roles for several years after becoming enamored with the space in 2014. He has bylines in various cryptocurrency magazines such as Decrypt and CoinTelegraph.