MicroStrategy has been on a buying spree this year and does not show any signs of slowing down soon. The firm has surpassed over 100,000 BTC on its balance sheet already, making it the company with the largest bitcoin holdings in the world. This has not stopped MicroStrategy as the intelligence firm from buying more. If anything, it seems to have renewed vigor towards its bitcoin goal.
The firm has made a hefty profit from all of its BTC that it holds on its balance sheet. With over $2 billion in profit already recorded for the year 2021, the firm has led a profitable venture by going into bitcoin. Once more, MicroStrategy has made a large bitcoin purchase and renewing its promise to hold the coins.
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MicroStrategy Buys 1,434 BTC
MicroStrategy CEO Michael Taylor announced the firm’s latest bitcoin purchase on his Twitter account. The purchase took place on Thursday and saw the firm adding 1,43, BTC to its already impressive holdings. The total came out to $82.4 million at an average price of $57,477 per bitcoin.
MicroStrategy has purchased an additional 1,434 bitcoins for ~$82.4 million in cash at an average price of ~$57,477 per #bitcoin. As of 12/9/21 we #hodl ~122,478 bitcoins acquired for ~$3.66 billion at an average price of ~$29,861 per bitcoin. $MSTRhttps://t.co/Xke8QhoYpy
— Michael Saylor⚡️ (@saylor) December 9, 2021
MicroStrategy published a report of the sale on its website using a Form 8-K. The latest purchase now brings MicroStrategy’s total bitcoin holdings to a total of 122,478 BTC held on its balance sheet.
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The intelligence firm has now spent over $3.6 billion on bitcoin with an almost 100% return on investment. It remains unbothered by the recent price dips that the digital asset has suffered, instead, taking advantage of the low prices to increase its holdings. The total value of MicroStrategy’s BTC investment now sits at $5.8 billion, representing about a $2.2 billion profit margin.
How Does Institutional Investment Affect Bitcoin?
The price of bitcoin has grown beyond the point where the market can be moved by individual investors alone. For an asset valued at over $1 trillion, it takes some serious money to move the needle in the market. This is why it is important for institutional investors to come into the market as the inflow works to drive the price of the digital asset even higher.
BTC trading south of $48,000 | Source: BTCUSD on TradingView.com
On the flip side of this though, institutional investors can just as well affect the market negatively. When these ‘big money’ start to pull out of the market, it can drive the price down, leading to a crash.
However, the importance of institutional money in the market cannot be overestimated. ARK Invest CEO Cathie Wood pointed out that Bitcoin has the potential to hit $500,000 but it would need more institutional investors to come into the market to get to this point.
Featured image from NewsBTCP, chart from TradingView.com