MicroStrategy, a business intelligence firm, has announced buying 205 Bitcoin for another $10 million. The company’s latest Bitcoin purchase makes the total holding amount 91,064 BTC. This is the fourth time this year, the company had purchased Bitcoin. Previously, it bought 328, 295, and 314 BTC for $15 million, $10 million, and $10 million respectively.
MicroStrategy Continues With Its Bitcoin Buying Spree
MicroStrategy said it purchased the 205 BTC for $10 million in cash, at an average price of about $48,888, inclusive of fees and expenses.
As of March 5, MicroStrategy acquired 91,064 Bitcoins for almost $2.2 billion. Over time, the valuation of cryptocurrency holdings has grown dramatically with over $4.4 billion at the time of writing.
MicroStategy’s Bitcoin buying spree has resulted in a positive valuation for its shareholders with its stock up over 300% in the past six months. In fact, the stock prices of MicroStrategy have risen faster than the price of Bitcoin itself.
Despite this, the stock price of MicroStrategy did experience a pullback in recent weeks owing to its business results. At the time of writing the shares of MicroStrategy is down by 11%.
Additional 205 Bitcoin for $10 Million
Bitcoin’s price had been hovering above $48,000 on March 5 after MicroStrategy’s announcement before quickly losing momentum.
The cryptocurrency’s price did fell overnight to as low as $46,500 after having climbed to nearly $51,000 in the previous day. The selloff in the crypto market comes alongside some panicked action in the stock market, and rising bond yields.
Despite this, the cryptocurrency has gained 65% this year after quadrupling in 2020. Institutional demand and corporations have been a big driver of Bitcoin’s price gains over the past year.
On Feb. 21, the leading cryptocurrency had hit an all-time high of $58,640 Feb. 21. With its continual rally, the cryptocurrency’s price did fall down to a low of $43,343 last week, representing more than a 25% correction. The digital currency is currently around 19% below its all-time high.