MicroStrategy Inc, the Virginia based software company led by vocal Bitcoin maximalist CEO Michael Saylor, has invested a further $177m with a purchase of 3,907 BTC.
This is the latest of a series of huge purchases made by the firm over the course of 2021.
In Saylor’s twitter announcement, he revealed the firm was now holding 108,922 BTC (valued at around $2.9Bn) – with an average buy-in cost of $26,769.
MicroStrategy has purchased an additional 3,907 bitcoins for ~$177 million in cash at an average price of ~$45,294 per #bitcoin. As of 8/23/21 we #hodl ~108,992 bitcoins acquired for ~$2.918 billion at an average price of ~$26,769 per bitcoin. $MSTRhttps://t.co/8jUlJImJbO
— Michael Saylor⚡️ (@michael_saylor) August 24, 2021
The firm now holds more Bitcoin than any other publicly listed company in the world.
The news, however, was not entirely unexpected with the tweet confirming Saylor has kept to his commitments to buy more Bitcoin as made in his Q2 Microstrategy earnings report.
Earlier this year, Microstrategy embarked on a sequence of Bitcoin purchases.
The CEO then turned to equity financing in a third capital raise move which saw the firm file for a $1bn stock listing with the SEC.
Saylor has the crypto community divided over his Bitcoin maximalist philosophy which rests on the idea that Bitcoin is the best preserve of wealth.
The death-or-glory figure has been called by some ‘the Michael Burry of our time’, in a reference to the trader at the heart of the Big Short film.
The trading premium of MicroStrategy is seen as a flag by some bearish analysts – a signal of overvaluation. The BTC accumulation exposes MicroStrategy to huge risk of insolvency if the price of BTC downturns heavily.
Saylor argues that the premium is bullish and justified by the company’s ability to raise capital and debt with zero-interest as well as large-scale purchases of BTC. MicroStrategy remain active in the enterprise software space and this allows them to raise large debts.
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