Benzinga - Software giant MicroStrategy Inc (NASDAQ: MSTR) added 12,333 Bitcoin (CRYPTO: BTC) to its holdings, investing around $347 million.
The acquisition was disclosed in a filing with the U.S. Securities and Exchange Commission on Wednesday.
This brings MicroStrategy's total Bitcoin holdings to 52,333 coins, which have been amassed for a staggering $4.52 billion at an average price of $29,668 per coin, as shared by the company’s co-founder and chairman, Michael Saylor, on Twitter.
Notably, this is not the company’s first foray into the cryptocurrency market.
In April, MicroStrategy acquired 1,054 Bitcoin by investing about $29.3 million in cash, translating to an average cost of $28,016 per coin.
Saylor has been the driving force behind MicroStrategy’s Bitcoin investment strategy.
Though he resigned as the CEO in August, he continues to serve as the company's chairman and holds a majority stake.
Under his guidance, MicroStrategy embarked on a path of investing billions in Bitcoin, based on Saylor’s belief that inflation would severely devalue cash holdings.
This strategy has not been without its setbacks.
Since its initial investment in 2020, MicroStrategy has suffered considerable losses.
At the close of the first quarter of 2022, the worth of MicroStrategy’s Bitcoin stood at approximately $5.9 billion. However, this has since plummeted by about 73%.
Also Read: Digital Asset Investments Skyrocket: Bitcoin Dominates With $188M Inflows
The company's stock price has exhibited a close relationship with the volatile price movements of Bitcoin. Prior to MicroStrategy’s Bitcoin investment initiative, which commenced in July 2020, its shares traded at around $123.
They soared to an all-time high of $1,272 in February 2021 but have since dropped to nearly $330 as of Wednesday at publication.
Despite these setbacks, Saylor remains unwavering in his dedication to cryptocurrency.
He recently asserted his conviction that Bitcoin has the potential to constitute 80% of the cryptocurrency market. Saylor's optimism was seemingly supported in June when Bitcoin's market dominance exceeded 50% for the first time in two years.
Read Next: HSBC Jumps On The Crypto Train, Unleashes Bitcoin And Ethereum ETFs
Photo: Reason TV, Wikicommons; Shutterstock
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.