Bitcoin Backer MicroStrategy Pours $25 Million More Into Cryptocurrency

MicroStrategy, a US-based business-intelligence software company, has bought additional Bitcoin worth $25 million (roughly Rs 187 crore) in cash during the recent crash. Michael Saylor, its CEO, said his company has bought another 660 Bitcoins at an average price of $37,865 (roughly Rs 28.35 lakh) per Bitcoin. MicroStrategy is reportedly the biggest corporate investor of the world's largest cryptocurrency by market value. The company now holds a total of more than 1,25,000 Bitcoins. The fresh acquisition has been made at a time when the crypto market is on a downward trajectory and Bitcoin, in particular, has lost more than 40 per cent value since November.

Bitcoin had hit a high of $69,000 (roughly Rs 51.67 lakh) in November but is currently trading just over $36,000 (roughly Rs 26.96 lakh), lower than what Saylor said the average price was for MicroStrategy's recent Bitcoin purchase. However, MicroStrategy is still in green if the average price of total Bitcoins in its kitty is taken into account.

“MicroStrategy has purchased an additional 660 Bitcoins for $25 million in cash at an average price of $37,865 per Bitcoin. As of 1/31/22, we hodl 125,051 Bitcoins acquired for $3.78 billion at an average price of $30,200 per Bitcoin,” Saylor tweeted. In the context of buying and holding cryptocurrencies, “HODL” is a phrase formed from a misspelling of “hold”.

MicroStrategy said in a statement that the fresh batch of Bitcoins was purchased between December 30 and January 31.

CoinGecko, a cryptocurrency data platform, said that MicroStrategy was the largest corporate backer of Bitcoin. It is distantly followed by Tesla, which holds only 48,000 Bitcoins.

MicroStrategy CEO Saylor, 56, is a known proponent of Bitcoin. In July last year, he had said his company's strategy was to invest in Bitcoin for the long term as the future of the Big Tech is “digital property.”

More recently, he told Bloomberg said Bitcoin's slide from a record high in November does not worry him as the inflation is rising. “The best defence against inflation is a Bitcoin standard,” he added.