MicroStrategy, a business intelligence (BI) company, has topped up its Bitcoin reserve, a day after it disclosed plans to hold more Bitcoins with the US regulator. Following an update on Twitter today, the company has purchased additional 16,000 Bitcoins. Coupled with the initial purchase, the announcement today places MicroStrategy as one of the biggest Bitcoin bulls.
MicroStrategy Bought More Bitcoins at $175 Million
As confirmed in a tweet by the CEO of MicroStrategy, Michael Saylor, the company bought exactly 16,796 Bitcoin on Monday. The estimated price for the recent purchase was reported to be $175 million during the time of the purchase. Probably, the recent purchase marks yet another significant amount of Bitcoin to be purchased since this year.
Following the CEO’s tweet, the company now has a total of 38,250 BTCs sitting as their reserve assest. In less than two months, MicroStrategy has spent nearly half a billion dollars in acquiring the digital currencies as a reserve asset. Saylor noted that, with the expenses and fees, the aggregate price for all the cryptocurrencies they purchased is worth $425 million.
MicroStrategy Increases Its Bitcoin Reserve
MicroStrategy’s Bitcoin reserve is partly a strategy for the company to hedge against inflation with the US dollar. The company earlier noted:
“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders. […] MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy.”
As Blocdesk reported, MicroStrategy began converting a significant percentage of its cash reserve to Bitcoin on August 11. Its Bitcoin reserve initially contained 21,454 Bitcoin, which was purchased with over $200 million at that time.