MicroStrategy recently announced on its website that it has purchased another 1,045 BTC for a total of $29.3 million. This latest purchase brings the company’s Bitcoin holdings up to 140,000, worth about $4.17 billion.
Last week, this tech company also spent $150 million to buy more Bitcoin. The overall average purchase price on those holdings is $29,803. Holding a lot of Bitcoin has sent MicroStrategy’s shares up 105% year-to-date, while bitcoin is up more than 72%. MicroStrategy’s shares are seen by some as a proxy for investing in bitcoin due to its huge exposure to this cryptocurrency. MicroStrategy is currently the tech firm with largest Bitcoin holdings in the world.
MicroStrategy acquired the new Bitcoin at an average price of $28,016. The purchases were made between March 24 and April 4 while the crypto market was digesting further regulatory unease as the Commodity Futures Trading Commission (CFTC) brought a case against Binance and its CEO, Changpeng Zhao.
Previously, MicroStrategy, Michael Saylor, shared that his company seeks to earn profits from Bitcoin holdings, such as lending Bitcoin.
Since the beginning of the year, Bitcoin price has skyrocketed despite the massive buying and selling of MicroStrategy. Its price is up about 67% year-to-date after falling 63% in 2022. In the wake of a series of failures last year, including the collapse of crypto exchange FTX and the bankruptcy of several crypto firms, market capitalization of all cryptocurrencies fell below $1 trillion. The cryptocurrency’s market cap has since then grown to $1.2 trillion on Wednesday.