MicroStrategy, the US-based business intelligence firm, recently announced that the company has acquired 5,050 Bitcoin for approximately $243 million in cash.
According to an official announcement by Michael Saylor, the CEO of MicroStrategy, the company now has a total of 114,042 Bitcoin. In August 2021, MicroStrategy acquired 3,907 BTC for $177 million in cash.
Since the start of 2021, MicroStrategy has expanded its Bitcoin portfolio substantially. The Nasdaq-listed company is one of the largest institutional holders of the world’s largest cryptocurrency. The stock price of MicroStrategy jumped by nearly 5% after the recent Bitcoin announcement.
“MicroStrategy has purchased an additional 5,050 bitcoins for $242.9 million in cash at an average price of $48,099 per BTC. As of 9/12/21, we are holding 114,042 bitcoins acquired for $3.16 billion at an average price of $27,713 per bitcoin,” Saylor said in a Tweet.
Despite the price Volatility , institutional adoption of Bitcoin and other cryptocurrency assets has increased significantly since the start of 2021. The Asian firm, Meitu and US-based Tesla acquired BTC in large amounts during the first half of 2021. El Salvador, the Central American nation, recently announced that the country is planning to exempt foreign investors from taxes on BTC profits. Nayib Bukele, the President of El Salvador, revealed last week that the country is now holding 550 BTC.
Bitcoin’s Weekly Price Action
BTC saw extreme volatility last week after its price dropped by nearly $10,000 within 12 hours on 7 September. However, its on-chain activity remained positive as long-term Bitcoin holders increased accumulation.
“The Bitcoin market experienced a high volatility sell-off early in the week, with prices initially breaking up to a new local high of $52,849, before settling down to a low of $44,196. Meanwhile, in spot and on-chain markets, the historically significant trend of investor accumulation and long-term holding remains well and truly intact. Despite a 50%+ sell-off experienced in May, a strong rally from the $29k lows, and now another sharp sell-off this week, HODLers appear unphased,” the crypto Analytics platform, Glassnode mentioned.
