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February 2, 2022

MicroStrategy Still Buying Bitcoin

MicroStrategy, one of the top institutional Bitcoin investors, announced that it had purchased more Bitcoin throughout January, despite the asset class losing more than 16 percent of its value.

MicroStrategy’s CEO, Michael Saylor, announced the acquisition on Twitter, as he usually does. The company’s total Bitcoin holdings have now reached 125,051 BTC. Using today’s market price, the total value is estimated to be around $4.8 billion.

MicroStrategy purchased 660 BTC for about $25 million in cash between December 30, 2021, and January 31, 2022, according to an official form filed with the US Securities and Exchange Commission (SEC) on Tuesday.

MicroStrategy received 660 BTC for $25 million in Bitcoin, which was purchased at an average price of $37,865 per BTC, including fees and expenditures. MicroStrategy has now purchased a total of 125,051 BTC for a total of about $30,200 per coin. This indicates that MicroStrategy spent a total of $3.78 billion on their BTC acquisition, including fees and expenditures.

This also implies MicroStrategy is in the black by 26.82 percent, thanks to unrealized gains on its Bitcoin acquisition of nearly a billion dollars. The latest news comes after the Securities and Exchange Commission (SEC) of the United States apparently rejected MicroStrategy’s Bitcoin accounting techniques, leading the company’s stock to plunge in mid-January.

The SEC took issue with MicroStrategy’s reporting of BTC purchases, claiming that the form did not meet Generally Accepted Accounting Principles (GAAP). The SEC claimed that MicroStrategy calculated statistics for its BTC purchases using non-GAAP methodologies that excluded the impact of share-based compensation expense, impairment losses, and gains on intangible asset sales.

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MicroStrategy’s most recent Bitcoin acquisition isn’t as significant as its past BTC purchases. MicroStrategy reported two significant BTC purchases in December 2021, purchasing 1,434 BTC from November 29 to December 9 at an average price of $57,477 per BTC and then 1,914 BTC from December 9 to December 29 at an average price of $49,229 per BTC. Previously, the corporation purchased 7,002 BTC at an average price of $59,187 per BTC from Oct. 1 to Nov. 29.