MicroStrategy Buys Another 660 Bitcoin

Microstrategy recently announced another major Bitcoin purchase as the crypto markets dipped. The company filed an official form with the US Securities and Exchange Commission (SEC), revealing that it purchased 660 BTC between December 30th, 2021, and January 31st, 2022. During this period, Bitcoin’s price dipped from over $46,000 to $35,000, where it has found a short-term floor. MicroStrategy has viewed this as an opportunity to continue its BTC investment program. With the latest purchase, the company now owns a total of 125,051 BTC.

Michael Saylor called out the recent purchase on his Twitter account:

MicroStrategy Continues to Pursue BTC

MicroStrategy’s filing reveals that they paid approximately $25 million dollars for the 660 BTC it bought in January 2022. The report further notes that the average purchase price was $37,865 per coin, including fees and other expenses. As for the 125,051 BTC that the company officially owns as of January 31st, its value is estimated to be $3.78 billion, with an average purchase price per coin at $30,200, inclusive of trading fees.

This latest purchase is not as big as some of the company’s earlier BTC buys. In the previous 30 days, for example, Microstrategy made two giant BTC purchases, with the first one taking place on November 29th, 2021, where the company bought 1,434 BTC for an average price of $57,477 per coin. They also made other large BTC purchases between December 9th and 29th, accumulating a total of 1,914 BTC at an average coin price of $49,229.

MicroStrategy’s Bitcoin Accounting Practices Brought into Question

Actions taken by the US Securities and Exchange Commission caused MicroStrategy’s shares to drop quite noticeably in January after they rejected the company’s Bitcoin accounting practices. The regulator balked at MicroStrategy’s practice of reporting data regarding Bitcoin purchases based on non-GAAP (Generally Accepted Accounting Principles).

The US securities regulator claimed that MicroStrategy relied on non-GAAP methods, excluding the “impact of share-based compensation expense and impairment losses and gains on sale from intangible assets.”

Meanwhile, Bitcoin adoption continues to thrive in other countries. For example, the government of El Salvador, which adopted BTC as legal tender in late 2021, continued to invest in the cryptocurrency, especially during the price drop in January. The country’s president, Nayib Bukele, announced that the country bought $15 million worth of the coin (around 410 BTC), with the average price per coin being $36.585.

Leave a Reply

Your email address will not be published.

Related Articles
Read More

Apple’s Steve Wozniak Praises Bitcoin As “Pure Gold”

Steve Wozniak, the co-founder of Apple, recently spoke about the cryptocurrency industry. Despite the overall success of the broader cryptocurrency sector, Wozniak does not seem impressed. In fact, he criticized the crypto market for launching new coins nearly every day. However, when it comes to...
Read More

Why Does Bitcoin Pump And Alts Dump?

By and large, it is not unreasonable to expect the entirety of the crypto market to follow the lead of its flagship cryptocurrency, Bitcoin. This is generally true when things start going downhill. However, it gets trickier when Bitcoin shoots through the roof. It is...
Read More

Mexican Billionaire Learning About Bitcoin In El Salvador

Mexico’s billionaire and the third-richest man in the country, Ricardo Salinas Pliego, recently decided to visit El Salvador, following the country’s decision to recognize Bitcoin (BTC) as legal tender. Pliego, himself a major Bitcoin supporter, was interested in seeing how the crypto situation had progressed...
Read More

Bitcoin Price Dip Shaves Off $7 Billion From Balance Sheets

Bitcoin Price Crash Affects Big Money HoldersBack in November 2021, the price of Bitcoin surged to an all-time high (ATH) of about $69,000. However, BTC (the biggest cryptocurrency by market capitalization) plunged later in January 2021 to around $33,000, the lowest level on record since...
Total
0
Share