Michael Saylor announced that MicroStrategy has purchased additional bitcoins worth $ 15 million. Is the company using the average cost effect here?
MicroStrategy continues to buy Bitcoin
CEO Michael Saylor announced the purchase of another 328 Bitcoin ( BTC ) on Monday . These were paid for in cash and cost the company around $ 15 million. That’s an average price of $ 45,710 at the time of purchase.
With the investment, MicroStrategy now owns 90,859 bitcoins. Currently, these are worth about $ 4.3 billion. The company has been leveraging some kind of average cost effect on Bitcoin Evolution over the past five months. The average price on all Bitcoin purchases is $ 24,063 per coin. Saylor tweeted on Monday:
The company first bought Bitcoin in August 2020 . At the time, she bought 21,454 coins worth $ 250 million. MicroStrategy bought more BTC at various times towards the end of 2020 and eventually accumulated over 70,000 coins by the turn of the year.
In February, the company announced it would raise another $ 900 million to buy bitcoins again. In the end, this would add up to over $ 1 billion. Last Wednesday, the company then bought another 19,452 coins
In total, MicroStrategy has spent about $ 2.18 billion on Bitcoin. At current rates, the company would have estimated Bitcoins worth $ 4.3 billion. That means the company would have made over $ 2 billion in five months if it sold now. It is unlikely to happen anytime soon, however. Saylor previously said that buying bitcoins was one of the company’s two corporate goals. The second goal is to further expand the analysis software business.