Breaking: MicroStrategy Purchases Additional 13,005 Bitcoins Worth $489 Million

Published June 21, 2021 | Updated June 21, 2021

Microstrategy

Breaking: MicroStrategy Purchases Additional 13,005 Bitcoins Worth $489 Million

The Nasdaq-listed software company, MicroStrategy Incorporated has purchased an additional 13,005 units of Bitcoin (BTC) to cushion its already robust BTC reserves. As shared on his official Twitter handle, the company’s CEO, Michael Saylor revealed that the latest purchase is valued at approximately $489 million in cash at an average bitcoin price of about $37,617. 

While its primary business model revolves around software and intelligence systems creation, MicroStrategy has established itself as a pace-setter in its pursuit of a Bitcoin-laden Treasury. Michael Saylor unveiled that as of June 21, 2021, the company has acquired a total of approximately 105,085 bitcoins at an average price of $26,080 per bitcoin.

MicroStrategy Providing the Right Cushion for Market to Lean on

The entire cryptocurrency industry is reeling from the Chinese ban FUD and its price impact across the board. While the combined crypto market cap is down 3.38% to $1.35 trillion, a far cry from the $2.7 trillion recorded months ago, MicroStrategy is harnessing the inherent opportunities. While the drop in prices created an avenue for MicroStrategy to purchase more Bitcoin, the bullish actions provide succor to help brace the market from the impact of the ongoing ban in crypto by China’s Central Bank.

MicroStrategy has a rich history of allocating shareholder funds into its Bitcoin accumulation agenda. The company has engineered a number of avenues to raise funds to be invested in Bitcoin. Some of these include but not limited to the issuance of Senior Convertible Notes to the tune of $2 billion, as well as the selloff of its shares. The company has positioned itself as a model for other institutional investors to follow suit.

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The Drawback from Institutional Investors

Every organization is striving to meet up with sustainable best practices, reducing their Carbon-footprint especially as it relates to energy utilization. Bitcoin, the most attractive digital asset to institutional investors has been proven to take a lot of energy, particularly in its adopted mining process. The cryptocurrency has attracted a lot of concerns as fueled by the duo of Tesla CEO and the Chinese government, with demand to migrate mining operations to sustainable options.

Institutional investors appear to be more conservative compared to MicroStrategy, and like Tesla recently noted, investments may become intensified when 50% of mining activities run on renewable energy.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Godfrey Benjamin 61 Articles
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin
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