MicroStrategy bought an additional 8,957 BTC that the company has in the third quarter announced.
The company announced the significant increase in its Bitcoin holdings in its financial results for the third quarter of 2021, released on October 28th.
According to the report, the company’s BTC extraction averaged $ 46,876 and cost about $ 420 million in total. The purchase price included fees and other expenses, with some of the coins likely being bought at lower prices after the benchmark cryptocurrency fell to lows of $ 40,000 in September.
MicroStrategy first bought Bitcoin in the third quarter of 2020 and sparked an institutional tussle over crypto as it rebounded to break 2017 record highs.
In October 2020, Saylor revealed that he personally held 17,732 BTC, which was purchased at an average price of $ 9,882. According to him, the company knew of this position even before deciding to buy BTC.
Buy more bitcoin
MicroStrategy’s bitcoin holdings have grown steadily since the third quarter of 2020 when the company held approximately 38,250 BTC. After rising to 70,469 BTC in the fourth quarter of 2020, the company added more early in the year to break the 100,000 mark.
As of September 30, the company held a total of 114,042 BTC with a cumulative inventory of approximately $ 5 billion. At current prices of about $ 60,755, the company’s total inventory is about $ 6.9 billion.
However, according to its financial report, MicroStrategy plans to buy more Bitcoin as part of its corporate strategy. The company will seek to use its excess cash flows to purchase more Bitcoin, the document noted, and has also earmarked debt and equity transactions as a source of funding for future acquisitions.
Additionally, the company plans to hold Bitcoin for the long term, which underscores CEO Michael Saylor’s belief that the price of Bitcoin will rise even higher.
It is important that MicroStrategy wants to use its position as one of the top holders of Bitcoin to “Take the lead in the Bitcoin community. “
At the time of writing, Bitcoin price is trying to hit support above $ 60,000 after another explosive run hit a record high of over $ 67,000 in October.