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MicroStrategy Reveals $ 15 Million Bitcoin Purchase

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When it comes to bitcoin, MicroStrategy looks for more. This comes after buying more than 20,000 BTC in the first quarter of the year, at an average cost of about $ 52K (for a total cost of more than $ 1B). Now, the business intelligence firm led by Bitcoin advocate Michael Saylor is increasing its position.

The MicroStrategy macro

Saylor shared on Twitter today that the company bought an additional 271 BTC, at a cost of $ 55,387 per coin. He also noted that as of today, the company has over 90K BTC in total averaging just over $ 24K per coin. The company 8-K that refers to the purchase is also included in the Twitter post.

In a first quarter statement, the company stated that “the first quarter results were a clear example of our two-pronged corporate strategy, growing our business analytics software business and acquiring and holding bitcoins that is generating substantial value for shareholders”. The company’s latest bitcoin purchase seems to reaffirm that position from a couple of months ago.

The news comes on the heels of Tesla CEO Elon Musk suspending bitcoin payments for vehicle purchases, citing environmental concerns.

Related reading | $ 425 Billion Slashed From Crypto Market As Musk Says Bitcoin Is Bad For The Environment

Who is who

MicroStrategy ($ MSTR) is the largest publicly traded independent business intelligence company in the US, with a product used by several different Fortune 500 companies. Recent purchases of 8-K and previous bitcoins are not the first time MicroStrategy has embedded cryptocurrencies in business. Just last month, the company published an 8-K in which it revealed its decision to pay its board of directors in Bitcoin.

Saylor has been an outspoken advocate for cryptocurrencies and last year led MicroStrategy to be the first publicly traded company to modify corporate strategy to adopt bitcoin. Only 32 publicly traded companies, out of 40,000 on the market, have bitcoin on their balance sheet. MicroStrategy is the largest publicly traded corporate BTC holder to date. Shares in the company fell nearly 10% on the day.

MicroStrategy reported a 10% increase in revenue in the first quarter, with a more than 50% increase in product licensing and subscription revenue.

MicroStrategy still looking to “buy the fall” | Source: BTC-USD on TradingView.com

The crypto conviction

As if public-facing business decisions weren’t enough, Saylor’s statements on crypto in general will tell you quite a bit about the company’s optimistic outlook. Just yesterday Saylor described Bitcoin as the “most powerful and disruptive technology of our life.” Additionally, Saylor hosted a conference on “Bitcoin for Corporations” in February. Saylor often speaks of the ‘Bitcoin Standard’ as a way to help troubled countries revive their economies.

Given that Saylor remains a staunch advocate for cryptocurrencies, even saying that there is “zero chance” of bitcoin being replaced, it appears that MicroStrategy’s engagement in the space is likely to continue into the coming quarters.

Related reading | Cryptanalyst Claims MicroStrategy Is “On The Ropes” Amid Bitcoin Sell-off

Featured Image from Pixabay, Charts from TradingView.com

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