The prominent business intelligence and software company MicroStrategy is reaffirming its commitment to Bitcoin with its recent acquisition of an additional 155 BTC at a total cost of $5.3 million.
Steady Bitcoin Accumulation
On November 1, MicroStrategy’s chairman and founder, Michael Saylor, announced that the company had purchased an additional 155 bitcoins for $5.3 million in October. This acquisition comes at a time when Bitcoin’s price has been consistently rising, reaching a new annual high of $35,000. Just over a month ago, the company revealed that it had bought 5,445 bitcoins for $147.3 million.
MicroStrategy initially entered the Bitcoin market in August 2020, investing a substantial $250 million in BTC. Since then, the company has continued to expand its bitcoin holdings, implementing a treasury reserve strategy that now boasts over 158,400 bitcoins.
Impressive Bitcoin Holdings
As of October 31, MicroStrategy’s impressive Bitcoin holdings amount to a total of 158,400 BTC, with an approximate value of $5.4 billion. These bitcoins were acquired at an average cost of $29,586 per BTC. Meanwhile, the company’s financial performance remains robust, with total revenues showing a 3% increase year-over-year, reaching $129.5 million. Out of this revenue, $66 million is attributed to subscriptions and software products.
Furthermore, MicroStrategy’s strategic Bitcoin acquisitions have been highly profitable as the price of the digital asset surged in October, approaching the $35,000 mark. With the anticipation that spot Bitcoin exchange-traded funds (ETFs) may soon receive regulatory approval, the company is expected to attract even more significant investment.
Andrew Kang, Chief Financial Officer (CFO) at MicroStrategy, expressed his confidence in the company’s Bitcoin holdings and business intelligence products. He stated, “MicroStrategy is well-positioned to benefit from both the Bitcoin market dynamics and the growth in its business intelligence business.”
“MicroStrategy is well-positioned to benefit from both the Bitcoin market dynamics and the growth in its business intelligence business.” – Andrew Kang, CFO at MicroStrategy
Following these developments, MicroStrategy’s stock price (MSTR) rose by 2.7% in after-hours trading, reaching $438, according to Google Finance.
