Business intelligence firm MicroStrategy has bought an additional 660 bitcoins, its CEO Michael Saylor announced on Twitter on Tuesday.
The purchase was made for $25 million in cash at an average price of ~$37,865 per bitcoin, Saylor said.
As of January 31st, 2022, the company held ~125,051 bitcoins, acquired for ~$3.78 billion at an average price of ~$30,200 per bitcoin, Saylor added.
The purchase comes only a week after MicroStrategy’s CFO, Phong Le, said the company would continue to buy and hold Bitcoin on its balance sheet.
According to Le, MicroStrategy remains unfazed by the recent downtrend in the market and given that its previous investments remain firmly in profit, it is no surprise that the company intends to double down in the long term.
When MicroStrategy had first begun purchasing bitcoin, its strategy had been simple. It was going to purchase bitcoin to put on its balance sheet and hold it. There were never any plans to sell in the short term, as explained by CEO Michael Saylor. In about one year, the company had garnered the largest holdings of any publicly listed company.
Now, the CFO has come out to echo what Saylor had said before. MicroStrategy still has no plans of selling its BTC despite all of the profit it has made. It plans to put all of its free cash flow or raise money through other means which are intended to go straight into its bitcoin purchases.
“Our strategy with bitcoin has been to buy and hold,” Le said. “So to the extent we have excess cash flows or we find other ways to raise money, we continue to put it into bitcoin.”
The company currently holds 124,391 bitcoins as revealed in its end-of-year filings with the SEC. At one point, the returns on investment for its BTC holdings had reached almost 100%. Even with the recent downtrend and bitcoin’s declined value, the company is still almost $1 billion in profit from its investment in the digital asset.
