MicroStrategy buys additional bitcoin worth $10 million

Bitcoin • January 22, 2021, 9:05AM EST
UPDATED: January 22, 2021, 9:19AM EST
The Block

Nasdaq-listed MicroStrategy announced Friday that it had purchased an additional 314 bitcoin for $10 million in cash.

This brings MicroStrategy's total bitcoin holdings to 70,784 bitcoin, worth more than $2.28 billion at current prices. 

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The company's bitcoin bet appears to have paid off well so far. MicroStrategy acquired these bitcoins at an aggregate purchase price of around $1.2 billion and an average purchase price of approximately $16,035 per bitcoin. Currently, bitcoin's price is trading at around $32,300.

MicroStrategy made its first bitcoin purchase in August last year. At the time, the company's CEO Michael Saylor said, bitcoin investments are part of a new capital allocation strategy for maximizing long-term value for shareholders. 

Later, in an interview with The Block, Saylor said bitcoin is the "best money ever created." Saylor compared bitcoin to gold and the U.S. dollar and said the cryptocurrency is a superior asset for a treasury given it is not deflationary by design.

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