MicroStrategy Raises Its Bitcoin Standard By Another $10 Million
MicroStrategy (MSTR) boosted its Bitcoin Standard yesterday spending a further $10 million on approximately 314 bitcoins yesterday, taking the total bitcoins on its balance sheet to 70,784.
MicroStrategy filed an 8-K form with the Securities and Exchange Commission (SEC) to confirm its latest BTC purchase, which also details the company’s aggregate position.
CEO Michael Saylor took to Twitter to share the news, saying it was maintaining its Treasury Reserve Policy in adopting a Bitcoin Standard.
‘MicroStrategy has purchased approximately 314 bitcoins for $10.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $31,808 per bitcoin. We now hold approximately 70,784 bitcoins,’ explained Saylor.
MicroStrategy (MSTR) Keeps Buying Bitcoin
It is now the fifth time MicroStrategy has purchased bitcoins after first announcing the company was to adopt a Bitcoin Standard as its treasury reserve policy back in August 2020.
When Michael Saylor first announced they were to use the company’s liquid balance sheet to buy Bitcoin, the price per bitcoin was around $11,000.
Since then, MicroStrategy has bought BTC at several different valuations, the latest price was $31,808.
According to the SEC filing, MicroStrategy now holds approximately 70,784 bitcoins, which were acquired at an aggregate purchase price of $1.135 billion.
The average price for its combined purchases is approximately $16,035 per bitcoin, inclusive of fees and expenses, giving the Nasdaq-listed company a total profit of over 105%.
MicroStrategy Leading The Way In Institutional Adoption
Since adopting a Bitcoin Standard, MicroStrategy and its eloquent, rocket scientist CEO Michael Saylor are really leading the way in institutional adoption of Bitcoin.
Since MicroStrategy’s first announcement that it had invested $250 million in Bitcoin, the $MSTR price has rocketed from $123 to $577 at close on Friday.
This is making the whole institutional space take note, and we saw investment bank Morgan Stanley announce it had invested approximately $420 million in MicroStrategy on 31 December, 2020.
According to the filing, Goldman Sachs bought a total 792,627 MSTR shares boosting its stake in the company to 10.9%
Michael Saylor also announced he and MicroStrategy will host the inaugural Bitcoin for Corporations conference at World.Now on February 3-4.
Michael Saylor said on a CNBC interview yesterday, there are thousands of corporate executives attending the event.
Saylor also said he will make publicly available MicroStrategy’s Bitcoin execution playbook to anyone who attends the conference.
The playbook includes ‘all the accounting and legal guidance, saving anyone who wants it months, and millions of dollars.’
Institutional Demand For A Bitcoin Standard
Michael Saylor and MicroStrategy made headlines throughout the the second half of last year.
The relatively unknown publicly-traded company adopted a Bitcoin Standard in August and since then, Saylor has become one of Bitcoin’s biggest proponents.
He has continuously backed-up his firm belief that Bitcoin is a safer store of value than anything else by regularly buying bitcoins at higher prices.
This is a clear message to anyone in the institutional world that he believes Bitcoin is the ideal place to maintain value of a company’s balance sheet.
Institutional adoption of Bitcoin was inevitable, as is sovereign adoption. However, Michael Saylor and MicroStrategy sped up institutional demand for Bitcoin so much with such a bold play.
CIOs of every organisation know a cash-rich balance sheet is losing value, so now they are looking for a store of value they can trust. Adopting a Bitcoin Standard, however, institutions don’t need to trust.
