Yesterday, Live Bitcoin News reported that a company called MicroStrategy – which had already purchased roughly $250 million in bitcoin recently – was now considering adding more units of the world’s number one digital currency to its now massive stash.

MicroStrategy Has Made Its Next Major Move

Well, it looks like those considerations have led to action as MicroStrategy just announced today that it has purchased an additional $175 million in bitcoin. The company now owns more than $400 million in BTC, which is equivalent to how much was lost by Mt. Gox – the ill-fated Japanese exchange – in February of 2014.

Just days ago, the company issued a statement saying that it had met with financial advisers about potentially issuing a new policy within its infrastructure that would allow it to hold both cash and bitcoin as a means of monetary support. The policy went through on September 11 (Patriot Day) and was finalized on September 14 (three days later). Now, the company has moved forward with its second purchase of the digital asset, and already MicroStrategy stands to gain a hefty bundle.

The company has likely lost money on the first $250 million it purchased, as this was done during a time when bitcoin was trading within the $11,000 range. Now, bitcoin has fallen back a bit, meaning that MicroStrategy has ultimately lost quite a bit with its first buy. This second time around, bitcoin is trading in the high $10,000 range, meaning that there is a different between this price and the first price.

Should bitcoin ultimately decide to move up further – and evidence suggests that it will – MicroStrategy stands to make good on its investment and increase its financial holdings.

CEO Michael Saylor just announced in a Twitter message:

On September 14, 2020, MicroStrategy completed its acquisition of 16,796 additional bitcoins at an aggregate purchase price of $175 million. To date, we have purchased a total of 38,250 bitcoins at an aggregate purchase price of $425 million, inclusive of fees and expenses.

Institutional Players Are Becoming Much More Confident and Active in Crypto

It’s interesting that the enterprise would choose to purchase more bitcoin after likely suffering a heavy loss from that first buy. If anything, it shows that this is not a fluke, and that MicroStrategy really believes in the strength, stamina and vigilance of the world’s number one cryptocurrency by market cap.

It also shows us how serious institutions are becoming about cryptocurrency. Several major companies are now turning to bitcoin as a means of ensuring financial stability despite its ongoing volatility and vulnerability to negative market conditions. Grayscale, for example, confirmed that more than $1 billion in BTC was traded or purchased during its second quarter – just a few months after bitcoin had dropped into the $3,000 range thanks to the ongoing coronavirus pandemic.

The post MicroStrategy Just Bought a Whole Lot More BTC appeared first on Live Bitcoin News.

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Author: Nick Marinoff

Categories: Bitcoin

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