Michael Saylor's MicroStrategy has been acquiring more Bitcoin as the cryptocurrency jumped from around $41,000 in early February to over $50,000 towards the end.
MicroStrategy nabbed another 3,000 Bitcoin (BTC), spending an estimated $155 million on its latest BTC purchase at an average price of $51,813. The company founded by Saylor now holds 193,000 of the leading crypto assets.
MicroStrategy bought its BTC at an average price of $31,544 and has spent around $6 billion buying its crypto holdings, but at current prices it is worth almost $10 billion. The company generates over $4 billion in profits from its Bitcoin position and is one of the world's largest corporate BTC holders.
MicroStrategy has been buying Bitcoin since 2020, when inflation and the COVID-19 pandemic threatened the global economy. Saylor's basic idea was to use BTC as a hedge against the falling US dollar. The company has used cash, debt and equity to finance its BTC purchases.
Saylor's Bitcoin Game
Saylor has touted BTC as the ultimate crypto asset, pointing to its technological design that maintains favorable demand-supply dynamics for holders.
According to the founder of MicroStrategy, Bitcoin demand exceeds supply by 10 times. Only 21 million BTC will ever exist, and a quadrennial halving event ensures that scarcity is maintained as mining rewards are reduced every four years. The pseudonymous Bitcoin inventor Satoshi Nakamoto developed the system.
Saylor also believes that SEC-approved spot BTC ETFs have mitigated this model by allowing hundreds of millions of dollars to flow into Bitcoin through the exchange-traded fund and giving Wall Street investors BTC exposure to enable.
Spot BTC ETFs began trading on January 11 and have amassed over $15 billion in assets under management (AUM), backed by over 250,000 Bitcoin. Saylor has famously said his company has no plans to sell its crypto holdings and that he will continue to buy up the highest holdings.
Bitcoin 30D price chart | Source: CoinMarketCap
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