MicroStrategy's Bitcoin Accumulation Continues Despite Price Volatility

U.S. business intelligence software company MicroStrategy is one of the few companies that has shown massive support for bitcoin. With over 100,000 BTC held by the company, MicroStrategy is the publicly traded firm with the highest number of bitcoins.

MicroStrategy Now Holds Over 100,000 BTC

Tweeting on Monday (June 21, 2021), MicroStrategy CEO Michael Saylor announced that the company bought 13,005 BTC worth $489 million, at an average price of about $37,617. The purchase comes after the business intelligence company completed a debt offering which raised $500 million, with the proceeds channelled towards acquiring more bitcoin.

With the additional bitcoin purchase, MicroStrategy now has a total of 105,085 BTC in its portfolio, bought for a total of $2.7 billion, with the average purchase price at $26.080 per bitcoin, inclusive of expenses and fees. The current number of bitcoins in MicroStrategy’s stash makes the business intelligence software firm the publicly traded company with the most BTC holdings.

Meanwhile, MicroStrategy has been accumulating BTC despite the price volatility of the flagship cryptocurrency. After reaching an all-time high (ATH) of close to $65,000 in April, the price of bitcoin fell over 30% in one week in May. The crash came amid negative sentiments surrounding bitcoin.

MicroStrategy made headlines back in August 2020, after the company announced that it made a decision to hold bitcoin as a primary reserve asset, and bought $250 million worth of BTC. According to the company at the time:

This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.

The company continued, stating that “MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy.”

Not Selling Any Bitcoin

Since that first purchase, the company has not looked back or changed its stance on bitcoin. In April, the business intelligence software company revealed in a filing with the U.S. Securities and Exchange Commission (SEC) that its non-employee directors will start receiving their payment in bitcoin instead of cash.

The Nasdaq-listed company stated that it was planning to sell up to $1 billion of its Class A common stock over time, with part of the proceeds possibly used to increase its BTC stash. Meanwhile, MicroStrategy CEO, Michael Saylor, has been a vocal proponent of bitcoin, even going as far as planning to set up a new BTC podcasting station.

Commenting on the company’s decision to accumulate bitcoin, Saylor said:

We rotated our shareholder base and transformed ourselves into a company that’s able to sell enterprise software and to acquire and hold bitcoin, and we’ve done it successfully with leverage. That has increased the power of the brand by a factor of 100.”

Saylor also noted that the company’s Q1 2021 performance was the best quarter in the last ten years. The MicroStrategy CEO added that the firm’s foray into bitcoin was proving to be profitable, which was satisfactory for employees and shareholders.

Meanwhile, Saylor has said that the company was not looking to sell any of its bitcoin, despite the crypto asset’s volatility. While many in the cryptocurrency community have applauded the MicroStrategy CEO’s BTC accumulation, some others believe that bitcoin’s high volatility could affect the company’s bottom-line in the future.

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