Nasdaq-listed business intelligence firm Microstrategy Inc. (NASDAQ: MSTR) has made its third major bitcoin purchase in 2020, acquiring 2,574 bitcoins for $50 million in cash. The company now holds approximately 40,824 bitcoins, valued at over $780 million at current market prices.
Third Bitcoin Acquisition Details
CEO Michael Saylor announced the purchase via Twitter on Friday, December 4, 2020. The acquisition was conducted in accordance with Microstrategy's Treasury Reserve Policy, at an average price of approximately $19,427 per bitcoin. The company also filed a Form 8-K with the U.S. Securities and Exchange Commission (SEC) disclosing the transaction. According to the filing, Microstrategy’s total aggregate purchase price for its bitcoin holdings is approximately $475 million, inclusive of fees and expenses.
Growing Bitcoin Treasury
This marks the company's third bitcoin buy since August 2020. The first purchase involved 21,454 bitcoins for $250 million, followed by a second acquisition of 16,796 bitcoins for $175 million in September. All purchases were facilitated by Coinbase. With bitcoin trading around $19,153 at the time of the latest purchase, Microstrategy's digital asset treasury has appreciated significantly.
CEO's Personal Stance
Michael Saylor has become a vocal bitcoin advocate, frequently appearing on podcasts and interviews to explain why he considers bitcoin a superior store of value compared to gold. In October, Saylor revealed that he personally owns 17,732 bitcoins purchased at an average price of $9,882 each. His conviction has influenced other corporate treasurers to consider adding bitcoin to their balance sheets.
The continuous accumulation by Microstrategy signals growing institutional adoption of cryptocurrency and has sparked discussions about the role of digital assets in corporate treasury management. While some applaud the bold strategy, others caution about the volatility risks associated with bitcoin.