This year, MicroStrategy has been on a buying binge and shows no signs of slowing down anytime soon. The company has already surpassed 100,000 BTC on its balance sheet, making it the company with the largest bitcoin holdings globally. This hasn’t deterred MicroStrategy, the intelligence firm, from purchasing more. If anything, it appears to have regained vigor in its pursuit of the bitcoin.
The company has profited handsomely from all of the BTC it has on its balance sheet. With over $2 billion in profit already recorded for 2021, the company has led a profitable venture by entering the bitcoin market. MicroStrategy has made another large bitcoin purchase, renewing its promise to hold the coins.
On his Twitter account, MicroStrategy CEO Michael Taylor announced the company’s latest bitcoin purchase. The transaction took place on Thursday, and the company added 1,434 BTC to its already impressive holdings. At an average price of $57,477 per bitcoin, the total came to $82.4 million.
MicroStrategy has purchased an additional 1,434 bitcoins for ~$82.4 million in cash at an average price of ~$57,477 per #bitcoin. As of 12/9/21 we #hodl ~122,478 bitcoins acquired for ~$3.66 billion at an average price of ~$29,861 per bitcoin. $MSTRhttps://t.co/Xke8QhoYpy
— Michael Saylor⚡️ (@saylor) December 9, 2021
MicroStrategy used a Form 8-K to publish a report on the sale on its website. The most recent purchase brings MicroStrategy’s total bitcoin holdings to 122,478 BTC on its balance sheet.
The intelligence firm has now spent more than $3.6 billion on bitcoin, with a nearly 100% return on investment. It is unconcerned about the recent price drops in the digital asset, instead taking advantage of the low prices to increase its holdings. MicroStrategy’s total BTC investment now stands at $5.8 billion, representing a $2.2 billion profit margin.
The price of bitcoin has risen to the point where individual investors can no longer move the market. It takes a lot of money to move the needle in the market for an asset worth more than a trillion dollars. This is why institutional investors must enter the market, as the inflow works to drive the digital asset’s price even higher.
On the other hand, institutional investors can have a negative impact on the market as well. When ‘big money’ begins to withdraw from the market, it can cause the price to fall, resulting in a crash.
The importance of institutional money in the market, on the other hand, cannot be overstated. Cathie Wood, CEO of ARK Invest, stated that Bitcoin has the potential to reach $500,000 but that this would require more institutional investors to enter the market.