By
Steve Muchoki
April 19th, 2024
MicroStrategy plays a vital role in the move towards the mainstream adoption of Bitcoin by institutional investors.
American business intelligence, mobile software, and cloud-based services provider MicroStrategy Incorporated (NASDAQ: MSTR) has completed the acquisition of 5,050 units of Bitcoin (BTC) worth approximately $242.9 million. As announced by the company’s Chief Executive Officer, Michael Saylor, the firm now HODLs a total of approximately 114,042 bitcoins acquired for about $3.16 billion at an average price of $27,713 per Bitcoin.
MicroStrategy has purchased an additional 5,050 bitcoins for ~$242.9 million in cash at an average price of ~$48,099 per #bitcoin. As of 9/12/21 we #hodl ~114,042 bitcoins acquired for ~$3.16 billion at an average price of ~$27,713 per bitcoin. $MSTRhttps://t.co/2ESbTy6ad7
— Michael Saylor⚡️ (@saylor) September 13, 2021
MicroStrategy remains the biggest institutional investor in Bitcoin, following an aggressive accumulation strategy that was unveiled with the first purchase back in August last year. MicroStrategy’s motivation is simple, and that is to explore an alternative to holding fiat currency which is subjected to depreciation amidst unfavorable economic conditions.
Following one of the similar acquisitions made by the company back in July, Michael Saylor confirmed that the firm will not relent in its adoption and acquisition of Bitcoin as its Treasury Reserve Asset.
“We continue to be pleased by the results of the implementation of our digital asset strategy. Our latest capital raise allowed us to expand our digital holdings, which now exceed 105,000 bitcoins. Going forward, we intend to continue to deploy additional capital into our digital asset strategy,” he said in a statement at the time.
MicroStrategy Bitcoin Acquisition: Attracting a Mix of Applause and Criticism
MicroStrategy plays a vital role in the move towards the mainstream adoption of Bitcoin by institutional investors. While serving as a major proponent and advocate for Bitcoin, Michael Saylor was notably instrumental in pushing electric automaker, Tesla Inc (NASDAQ: TSLA) to inject about $1.5 billion into Bitcoin back in February.
The bullish approach of MicroStrategy has earned both applause as well as criticism from industry stakeholders. Responding to the latest acquisition details, Bitcoin bull Anthony Pompliano said the company’s shareholders are fortunate to have Saylor leading them into a profitable future.
Congratulations. Your shareholders are fortunate to have you leading them into the future 🙂
— Pomp 🌪 (@APompliano) September 13, 2021
Other investors in the Bitcoin ecosystem are wary of the potential impacts of the MicroStrategy BTC accumulation. As observed by a Twitter user @grindmonsta222, Michael Saylor and his firm could easily crash the price of the digital currency “when it’s time he out to make money That’s Sales !!!”
While MicroStrategy has not shared its plans to dispose of its holdings in the near term, the potential impact of this sell-off, if it happens, will have a ripple effect on the entire crypto industry. At present, the MicroStrategy news is not impacting positively on the price of the BTC as the coin is changing hands at $44,766.48, down 2.90% in the past 24 hours, per data from CoinMarketCap.