MicroStrategy Builds Up Bitcoin Cache by $10 Million
(Bloomberg) -- MicroStrategy Inc. built up its Bitcoin cache with a new $10 million purchase, adding to Michael Saylor’s bet on the digital currency amid the latest wave of gyrating prices.
The enterprise-software company known for its bullish bets on cryptocurrencies disclosed in a Tuesday filing that it bought 229 Bitcoin at an average price of roughly $43,663 each. MicroStrategy now holds approximately 92,079 Bitcoins, which it says were acquired for about $2.25 billion at an average of about $24,450 per token, the filing shows.
The Tysons Corner, Virginia-based company run by Saylor is one of a handful to put Bitcoin on their balance sheets. Saylor has been a major proponent of the digital currency, arguing that the relaxation of the Federal Reserve’s inflation policy helped to sour him on cash.
MicroStrategy’s disclosure comes amid a swoon in crypto prices largely brought on by Twitter posts from Elon Musk, whose electric-vehicle firm Tesla Inc. purchased Bitcoin earlier this year. Musk last week criticized Bitcoin’s energy use as “insane” and said Tesla would suspend car purchases using the token, sending the price plummeting. Over the weekend, after insinuating his company might have sold its Bitcoin holdings, Musk sent out tweets clarifying that it hadn’t.
Others have also taken advantage of the slump. Cathie Wood, head of Ark Investment Management and another major crypto proponent, snatched up shares of Coinbase Global Inc. on Monday as the stock fell almost 4%. In fact, she bought shares for at least one of her funds every day last week, according to emails of the company’s trading activity.
Bitcoin is down more than 20% so far this month. On Tuesday, it fell for the sixth time in seven sessions, dropping as much as 5.1% to trade around $42,547.
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