MicroStrategy Tops Up Bitcoin Reserves With 1045 BTC Purchase

According to reports, MicroStrategy increased its holdings of 1045 BTCs at an average price of $28016, at a cost of approximately $29.3 million.

MicroStrategy increased its holdings of 1045 BTCs and currently holds 140000 BTCs

MicroStrategy, a publicly-traded business intelligence firm, has made another significant Bitcoin (BTC) purchase, adding 1045 BTC to its holdings at an average price of $28016. The move cost the company approximately $29.3 million.

MicroStrategy’s Bitcoin Purchase

According to reports, MicroStrategy’s latest Bitcoin purchase was made on December 4th, 2020. This added to the company’s already sizeable holdings, bringing the total number of BTC held to 40,824.
The move is in line with MicroStrategy’s ongoing Bitcoin buying spree, having previously acquired 21,454 BTC in August and September 2020. The company’s CEO, Michael Saylor, has reaffirmed his belief in Bitcoin, considering it a long-term store of value and advocating for other companies to follow suit.

Why is MicroStrategy buying Bitcoin?

MicroStrategy’s decision to invest heavily in Bitcoin has raised eyebrows, especially since the company’s primary focus is business intelligence. However, to understand the rationale behind the decision, it’s essential to consider the current economic climate.
With the COVID-19 pandemic upending financial markets, investors are looking for alternative assets in which to invest. The pandemic has led to significant global money printing by central banks, which has affected the value of fiat currencies. Bitcoin, by contrast, is in limited supply, and its scarcity makes it a hedge against inflation.
Further, Bitcoin’s decentralized nature makes it immune to government manipulation or control. As such, it is considered a safe haven asset in a time of economic uncertainty.

What does this mean for Bitcoin?

MicroStrategy’s Bitcoin purchases could be seen as a vote of confidence for the cryptocurrency. Mr. Saylor has been vocal in his support of Bitcoin, stating that it is a better store of value than gold. Furthermore, with institutional investors like MicroStrategy investing in Bitcoin, it could help drive further adoption.
Increasing institutional investment could also help stabilize Bitcoin’s volatile price. The cryptocurrency has seen wild price swings in the past, with many investors considering it a risky investment. However, increased institutional investment may help to mitigate some of the risks associated with Bitcoin.

Conclusion

In conclusion, MicroStrategy’s latest Bitcoin purchase is a sign of the growing institutional interest in the cryptocurrency. As more companies see Bitcoin as a viable investment, it could help drive adoption and stabilize its price. For MicroStrategy, it represents a significant investment in the cryptocurrency, and one that speaks to their belief in its long-term value.

FAQs

**1. What is MicroStrategy, and what do they do?**
MicroStrategy is a US-based business intelligence firm that provides data analysis and visualization software. The company has been in operation since 1989 and has over 4,000 customers worldwide.
**2. Why does MicroStrategy believe in Bitcoin?**
The CEO of MicroStrategy, Michael Saylor, considers Bitcoin a long-term store of value and a hedge against inflation. He has stated that he believes Bitcoin is a better investment than gold and has advocated for other companies to follow suit.
**3. How does Bitcoin’s decentralized nature affect its value?**
Bitcoin’s decentralized nature means that it is not under the control of any central authority, such as a government or central bank. As such, it is considered immune to government manipulation or control, which makes it a safe haven asset in a time of economic uncertainty.