Nasdaq-listed business intelligence firm MicroStrategy has made its third large bitcoin purchase, boosting its total holdings to over 40,824 BTC, worth more than $780 million at current market prices. The acquisition, announced on December 4, 2020, underscores the company's unwavering commitment to bitcoin as its primary treasury reserve asset.
Third Bitcoin Purchase: 2,574 BTC at $19,427 Average
CEO Michael Saylor tweeted Friday that MicroStrategy purchased approximately 2,574 bitcoins for $50 million in cash, at an average price of roughly $19,427 per bitcoin. The company also filed a Form 8-K with the U.S. Securities and Exchange Commission (SEC) confirming the details. According to the filing, MicroStrategy now holds approximately 40,824 bitcoins acquired at an aggregate purchase price of $475 million, inclusive of fees and expenses.
With bitcoin trading around $19,153 at the time of the announcement, the company's bitcoin treasury was valued at over $780 million, significantly exceeding its total cost basis.
Growing Bitcoin Treasury: Three Major Purchases Since August
MicroStrategy first entered the bitcoin market in August 2020, purchasing 21,454 BTC for $250 million. In September, it added 16,796 BTC for $175 million. Both transactions were facilitated by Coinbase. Combined with the December purchase, the company has invested a total of $475 million in bitcoin, holding an average cost basis of approximately $11,635 per coin — indicating a substantial unrealized profit at current prices.
Since his initial purchase, Saylor has become one of the most vocal bitcoin advocates, frequently appearing on interviews and podcasts to explain why bitcoin is superior to gold as a store of value. In October, Saylor revealed that he personally holds 17,732 BTC, which he bought at an average price of $9,882 each.
Pioneering Corporate Bitcoin Adoption
MicroStrategy's aggressive bitcoin acquisition strategy has set a precedent for publicly traded companies considering digital assets as part of their treasury management. Saylor has repeatedly called bitcoin “digital gold” and argued that its long-term appreciation potential outperforms traditional asset classes. His stance influenced other major firms, including Square and later Tesla, to allocate portions of their treasuries to bitcoin.
As of December 5, 2020, bitcoin was trading near $19,150, just shy of its all-time high of $20,000. Market observers viewed MicroStrategy's continued accumulation as a strong signal of growing institutional confidence in bitcoin as a reserve asset.