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A lot has changed in the Bitcoin and general digital currency ecosystem since MicroStrategy first made its investment in Bitcoin. Today, there is more awareness about the crypto asset amongst institutional investors.
MicroStrategy Incorporated (NASDAQ: MSTR), an American company that provides business intelligence, mobile software, and cloud-based services has made a new purchase of 4,167 Bitcoin (BTC) as it sought to extend its lead as the most bullish institutional investor backing the premier digital currency.
The acquisition was made known by the company’s Chief Executive Officer Michael Saylor who took to Twitter to share the news and unveiled that the purchase is valued at approximately $190.5 million at an average price of approximately $45,714 per BTC.
MicroStrategy has been making strategic acquisitions in Bitcoin since August 2020, and following the most recent acquisition, the company now has approximately 129,218 bitcoins acquired for about $3.97 billion at an average price of approximately $30,700 per bitcoin. Today, MicroStrategy stands as the most dogged corporate investor backing the digital currency.
MacroStrategy has purchased an additional 4,167 bitcoins for ~$190.5 million at an average price of ~$45,714 per #bitcoin. As of 4/4/22 MicroStrategy #hodls ~129,218 bitcoins acquired for ~$3.97 billion at an average price of ~$30,700 per bitcoin. $MSTRhttps://t.co/Z45OuJU5KI
— Michael Saylor⚡️ (@saylor) April 5, 2022
Judging from the angle that MicroStrategy is primarily a business intelligence firm, the company’s deep interest in Bitcoin and the entire crypto network has drawn both praises and reprisals from the broader investment world. While many have argued the misplaced investments of the company per the energy consumption requirements of BTC, the company has not in any way relented in taking advantage of opportunities that arise in the space to stack up more on Bitcoin.
MicroStrategy’s policy to invest in Bitcoin is backed up by more than just shareholder funds. Infact, the company is constantly in search of sources of capital to buy the digital currency. As reported by Coinspeaker, the company secured a Bitcoin-collateralized loan of $205 million from Silvergate Bank through the bank’s SEN leverage program.
The entire fund was used to acquire Bitcoin and it complements the company’s earlier issuances of Senior Convertible Notes to make similar purchases in the past year.
MicroStrategy Making Its Bitcoin (BTC) Bet at a Unique Time
A lot has changed in the Bitcoin and general digital currency ecosystem since MicroStrategy first made its investment in Bitcoin. Today, there is more awareness about the crypto asset amongst institutional investors, and a number of governments around the world are warming up to the revolutionary potentials of Bitcoin and the decentralized finance economy that it heralds.
El Salvador, a sovereign nation in Central America as well as Ukraine have both legalized Bitcoin for transactions, a move that has shifted the paradigm into making a whole lot of people believe that Bitcoin is finally here to stay.
The acquisitions of Bitcoin by MicroStrategy cannot come at a much better time as supermarkets, hedge funds, and banks amongst others are gradually exploring innovative avenues through which they can gain exposure to the nascent asset class. The entirety of good optics that surrounds Bitcoin is a testament to MicroStrategy’s belief in the fact that BTC is not just here to stay, but it is here to redefine the future of finance.