Nasdaq-listed business intelligence firm MicroStrategy Inc. (NASDAQ: MSTR) has made its third major Bitcoin purchase, bringing its total holdings to approximately 40,824 bitcoins, valued at over $780 million at current market prices.
Third Bitcoin Acquisition Details
On Friday, December 4, 2020, MicroStrategy CEO Michael Saylor announced via Twitter that the company had purchased approximately 2,574 bitcoins for $50 million in cash, at an average price of roughly $19,427 per bitcoin. “MicroStrategy has purchased approximately 2,574 bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy. We now hold approximately 40,824 bitcoins,” Saylor tweeted. The company also filed a Form 8-K with the U.S. Securities and Exchange Commission (SEC) the same day, confirming the acquisition. According to the regulatory filing, MicroStrategy stated that it holds approximately 40,824 bitcoins acquired at an aggregate purchase price of $475 million, inclusive of fees and expenses.
This marks the company’s third significant Bitcoin purchase since August 2020. The first batch of 21,454 bitcoins was acquired in August for $250 million, followed by a second purchase of 16,796 bitcoins in September for $175 million. All transactions were facilitated by Coinbase, a leading cryptocurrency exchange.
Portfolio Value and Market Impact
With Bitcoin trading around $19,153 at the time of the announcement, MicroStrategy’s Bitcoin holdings are worth over $780 million, representing an unrealized gain of more than $300 million above the total cost basis. The company’s aggressive accumulation strategy positions it as the largest publicly traded corporate holder of Bitcoin, signaling strong institutional confidence in the cryptocurrency. MicroStrategy’s continued purchases have been closely watched by both crypto enthusiasts and traditional investors as a bellwether for corporate adoption of Bitcoin as a treasury reserve asset.
Michael Saylor’s Bitcoin Advocacy
Since initiating the company’s Bitcoin strategy, Saylor has become one of the most vocal proponents of Bitcoin, describing it as a superior store of value compared to gold. He has appeared in numerous interviews and podcasts to explain his thesis, emphasizing Bitcoin’s scarcity, durability, and decentralised nature. In October 2020, Saylor revealed that he personally holds 17,732 bitcoins, which he bought at an average price of $9,882 each. His unwavering support and the company’s repeated purchases have inspired other corporates, such as Square and MassMutual, to allocate part of their treasuries to Bitcoin. Saylor believes that Bitcoin represents a reliable hedge against inflation and a long-term asset for preserving capital in an era of unprecedented monetary expansion.