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American business intelligence, mobile software, and cloud-based services, MicroStrategy Incorporated has announced it has acquired an additional 480 Bitcoin (BTC) worth about $10 million.
According to a filing released on Wednesday, the company affirmed that it now has approximately 129,699 Bitcoin units in its reserve.
“On June 29, 2022, MicroStrategy Incorporated (“MicroStrategy”) announced that, during the period between May 3, 2022, and June 28, 2022, MicroStrategy acquired approximately 480 bitcoins for approximately $10.0 million in cash, at an average price of approximately $20,817 per bitcoin, inclusive of fees and expenses,” the filing reads, “As of June 28, 2022, MicroStrategy, together with its subsidiaries, held an aggregate of approximately 129,699 bitcoins, which were acquired at an aggregate purchase price of approximately $3.98 billion and an average purchase price of approximately $30,664 per bitcoin, inclusive of fees and expenses.”
MicroStrategy Incorporated (NASDAQ: MSTR) announced back in August 2020 that it will make Bitcoin its Treasury Reserve Asset, and since then, the company has not looked back on purchasing millions and billions worth of the premier digital currency. Under its founder and Chief Executive Officer, Michael Saylor, the company has issued Convertible Senior Notes and has also secured a credit facility in order to purchase the digital asset.
MicroStrategy Bitcoin Purchase: Criticism or Praise
There is a general belief in the digital currency ecosystem that the best time to stack up on any digital currency is at a time when the prices are trading at a very low price. This act is generally called “Buying the Dip.”
MicroStrategy has earned a lot of praise from the cryptocurrency community for putting its money where its mouth is as Saylor has often posited that Bitcoin is a perfect hedge against inflation. The actions of Saylor in leading MicroStrategy with these acquisitions have been seen by many as a courageous move seeing the company has been under intense criticism from acclaimed Bitcoin bears like Peter Schiff.
As a tech company, MicroStrategy has also seen its shares depleted in value in the Year-to-Date period, and coupled with the global economic uncertainty, a lot of investors are advocating prudent spending and to adhere to cost-cutting measures. MicroStrategy may be faulted by Wall Street analysts for making a bet on what is termed a risky and volatile asset amidst an uncertain economic terrain.
MicroStrategy’s purchases are hinged on the premise that Bitcoin is an asset that has a very huge potential to grow in value over time, a proposition that is being adhered to considering the demand for the coin and its accompanying limited supply capped at 21 million BTC units.