MicroStrategy is undoubtedly the company with the most bitcoins (BTC). At least, the one that announces it publicly. Its president, Michael Saylor, announced that his company had acquired 1,914 new bitcoins in December. It now has 124,391 bitcoins, which is worth almost €5.3 billion at the current price.
1,914 new bitcoins (BTC) for MicroStrategy
MicroStrategy and its president Michael Saylor continue to diversify their cash into Bitcoin. Indeed, Saylor announced that his company acquired 1,934 new bitcoins between December 9 and 29 this year, for a fiat currency equivalent of €83 million. The average purchase price was €43,535 per BTC
MicroStrategy has purchased an additional 1,914 bitcoins for ~$94.2 million in cash at an average price of ~$49,229 per bitcoin As of 12/29/21 we hodl ~124,391 bitcoins acquired for ~$3.75 billion at an average price of ~$30,159 per bitcoin. $MSTRhttps://t.co/tNxDwaT8VD
– Michael Saylor⚡️ (@saylor) December 30, 2021
The transaction was confirmed in an attachment to the Securities and Exchange Commission (SEC), the US financial regulator. In total, MicroStrategy now owns 124,391 BTC, worth €5.3 billion at current prices. The average purchase price of all the company’s BTC is €26,671 per bitcoin.
MicroStrategy, a pioneer in Bitcoin (BTC) diversification
Despite Tesla’s successful communication and Elon Musk’s aura, it is MicroStrategy that is the big pioneer company in BTC investment. Unless a company is keeping its BTC purchases secret, MicroStrategy has the most BTC, outside of the crypto and blockchain sector. This investment started in August 2020 and has never stopped since.
To make these purchases, Michael Saylor is using the company’s cash reserves, i.e. its free cash reserves, but also convertible promissory notes. The latter are a kind of loan in the stock market environment, where the company’s shares serve as collateral. In other words, MicroStrategy borrows money in the markets to finance part of the purchase of the CTPs.
However, lenders need not worry, as the company has currently realised an unrealised gain of $1.85 billion. So the investment is proving to be quite profitable and cryptocurrencies seem to be still in the adoption phase for traditional finance.
However, it is noted that diversification into digital assets is still at the margins of many companies. Will 2022 be the year of mass adoption for the traditional sector
