MicroStrategy, a publicly-traded enterprise business intelligence (BI) application software vendor, seems to be heading into Bitcoin big-time. An update today confirms that MicroStrategy’s Bitcoin reserve has been increased by $175 million. This comes after the company revealed on Monday that it is looking to hold more of the cryptocurrency.
MicroStrategy’s Bitcoin reserve increased by over 16K Bitcoins
The company’s CEO, Michael Saylor confirmed the additional purchase in a tweet on Tuesday. He precisely noted that 16,796 Bitcoins were added to MicroStrategy’s Bitcoin reserve on September 14. The new Bitcoins were bought at an aggregate price of $175 million at the time. Notably, this marks the second significant Bitcoin purchase to be made by the billion-dollar business intelligence company.
Cryptopolitan reported the company’s initial Bitcoin purchase on August 11. At the time, MicroStrategy purchased 21,454 Bitcoin, which was bought at a whopping amount worth more than $200 million. Noteworthily, MicroStrategy’s Bitcoin reserve is part of the company’s investment strategy to avoid inflation during this uncertain time with the global economy. The company previously said:
Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders. […] MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy.
MicroStrategy admits to buying more Bitcoin
As Saylor tweeted, the company is currently holding a total of 38,250 Bitcoins in its crypto reserve. The aggregate purchase price for the cryptocurrencies runs to $425 million, including the expenses and transaction fees. The development today is coming days after the business intelligence company informed the United States Securities and Exchange Commission (SEC) of its plan to hold more Bitcoin. The company said to the regulator that it may be increasing its Bitcoin reserve by more than $250 million. Notably, the current MicroStrategy’s Bitcoin reserve places the company as one of the biggest Bitcoin bulls.