Business analytics and mobility platform MicroStrategy has made an additional purchase of $10 million in Bitcoins. The business intelligence firm’s CEO Michael Saylor revealed this recent purchase on Friday via a link he posted on his Twitter. The link was of a filing of Form 8-K to the Securities and Exchange Commission (SEC).
According to the filing, the business intelligence company bought 205 bitcoins on Monday at an average price of $48,888 per bitcoin. MicroStrategy’s recent purchase brings the company’s total bitcoin holding to 91,064, which is currently worth $4.5 billion. It had acquired all these bitcoins at an average price of $24,119 and accumulatively $2.196 billion.
MicroStrategy Is Taking Advantage of Bitcoin’s Profits
MicroStrategy investment in Bitcoin is definitely yielding a profit for the business intelligence company. It is no wonder that the company is moving deeper into the bitcoin market. Although bitcoin’s price dropped by 8% in the past week, it is still maintaining a year-to-date price increase of 70%. It is, therefore, still a profitable investment for those who took advantage early enough.
Currently, the business analytics and mobility platform have acquired 0.4336% of the 21 million bitcoin supply cap. It is now the fourth-largest company listed on bitcointreasuries.org behind Grayscale, Mt Gox, and Block. If the firm continues to make more purchases, it will soon be reaching the 100k bitcoin milestone.
Could This Be a Risky Move for MicroStrategy
MicroStrategy’s bitcoin buying spree has emanated contrasting views. While many are agreeing with this business move, some are calling it irresponsible. A financial expert commented that MicroStrategy’s move might be doomed in the long run. The expert said that considering the volatility of bitcoins’ price, it was unwise for the business intelligence company to keep buying the digital currency. He believes there is a possibility that bitcoins would fall in value, and the firm will end up in losses.
The argument of cryptocurrency is, however, a matter of opinion. With many strong critics, Bitcoin has still managed to survive the test of time and is still trading despite the many comments of it going extinct at its inception.