On March 12, publicly traded company Microstrategy announced that the company had purchased an additional 262 bitcoins for $ 15 million in cash. The company’s CEO Michael Saylor announced to his 623,000 Twitter followers on Friday (ET) the purchase of the coins in the early hours of the morning.
Microstrategy tells US regulators that $ 15 million in cash has been exchanged for 262 bitcoin
Seven days ago, on March 5, Bitcoin.com reported that Microstrategy was using $ 10 million in cash to buy 205 Bitcoin (BTC). On March 12, Microstrategy announced another $ 15 million acquisition of Bitcoin in a Form 8-K Securities and Exchange Commission (SEC). The March 12 SEC filing explains the company’s move to purchase the 262 bitcoin (BTC).
In the meantime, the Bitcoin bull and CEO of Microstrategy, Michael Saylor, announced the purchase on Twitter on Friday morning. Similar to Saylor’s previous tweets, the CEO explained how much Microstrategy bought, what price the company paid, how many Bitcoin the company now holds, and what average price the company paid per coin using the strategy.
Saylor tweeted at 8:00 a.m. (ET):
Microstrategy has bought another ~ 262 bitcoins for ~ 15.0 million USD in cash at an average price of ~ 57,146 USD per bitcoin, “wrote Saylor on Twitter. As of March 12, 2021, we purchased ~ 91,326 Bitcoins for ~ 2.211 billion USD at an average price of ~ 24,214 USD per Bitcoin.
The average dollar cost buying scheme pays off for micro-strategy
Despite the announcement, Bitcoin (BTC) fell to a low of $ 55,011 per unit at 8:25 a.m. during Friday morning’s trading sessions and is down over 2.7%. It did so after BTC hit a monthly high of $ 58,156 per coin, which was nearing the all-time high (ATH) of decentralized crypto-asset of $ 58,350 per coin.
Although the price is lower than what Microstrategy paid this week ($ 57,146 per BTC), the company’s dollar cost averaging strategy has so far paid off. The company’s 91,000+ BTC warehouse is worth over $ 5.1 billion, but the average cost of BTC of $ 24,214 shows it was all bought for $ 2.2 billion.
Additionally, the business intelligence (BI) company’s balance sheet at 91,326 Bitcoin is just 8,674 BTC away from 100,000 BTC. At today’s exchange rates, that’s equivalent to around $ 482 million worth of Bitcoin.
What do you think of Microstrategy on the $ 15 million worth of Bitcoins? Let us know what you think on this matter in the comments section below.
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