MicroStrategy Purchases Additional 2,574 BTC For $50 Million

The leading business intelligence firm MicroStrategy is still continuing to make investments in Bitcoin the world’s largest cryptocurrency by market cap. After investing $475 million, the firm has made another investment in Bitcoin. As compared to the previous two investments, the firm, this time, has invested only $50 million in the leading digital currency.

“In Accordance with Treasury Reserve Policy”

On Friday, December 4, 2020, the Founder and Chief Executive Officer (CEO) of MicroStrategy Michael Saylor revealed in a tweet that the firm has purchased an additional 2,574 Bitcoin (BTC) for an amount of $50 million. Michael Saylor said that this purchase of BTC was “in accordance with” the firm’s “Treasury Reserve Policy”. According to him, the price value of Bitcoin was standing at around $19,427 when the firm bought this handsome amount of Bitcoin. As he said in the tweet:

“MicroStrategy has purchased approximately 2,574 bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $19,427 per bitcoin.”

As per the tweet of MicroStrategy CEO, the publicly traded business intelligence firm is now holding a stash of 40,824 in Bitcoin (BTC). The firm made its first investment in the month of August when it purchased 21,454 BTC for an investment of $250 million. Following this massive investment, the firm’s interest increased further in the top-ranked cryptocurrency and it bought an additional amount of 16796 BTC by paying $175 million in cash in the mid of September.

With this, MicroStrategy has also become the first major publicly traded business intelligence company to have such a staggering amount of Bitcoin held in its Treasury Reserves. According to the data shared by Bitcoin Treasuries, MicroStrategy is on the top in terms of Bitcoin holdings. While on the other hand, the cryptocurrency asset management firm Galaxy Digital Holdings and Twitter CEO Jack Dorsey’s financial services firm Square are in the second and third spot respectively holding 16,651 BTC and 4709 BTC respectively.

Coinbase Facilitated MicroStrategy’s $475M Purchase

Recently, the San Francisco-based cryptocurrency exchange Coinbase claimed that it had facilitated MicroStrategy’s purchase of $475 million worth of Bitcoin. The exchange said that it served as a primary execution partner for the firm and helped the firm in this execution. According to Coinbase, MicroStrategy used the services of its crypto brokerage company Coinbase Prime.