While some political and corporate leaders have been eager to invest in and adopt cryptocurrencies, others are entirely hostile. Turkish President Tayyip Erdogan recently declared outright war on the Bitcoin network. President Erdoğan: "We Are At War" President Erdoğan expressed his opposition to Bitcoin in a meeting with Turkish students this Saturday. The event comes after one of them asked if the country's central bank would adopt cryptocurrencies. Erdogan responded with total rejection: "We have absolutely no intention of embracing cryptocurrencies. On the…
The world’s largest independent business intelligence firm, Microstrategy, has completed the purchase of 295 bitcoins for approximately $10 million. This latest purchase continues the company’s accumulation of BTC that began in 2020.
Microstrategy BTC Portfolio Worth $2.4 billion
Microstrategy CEO Michael Saylor revealed this latest purchase on Twitter. According to the tweet, Microstrategy purchased the 295 bitcoins using cash per its treasury reserve policy. The firm also spent $10 million to complete this latest round of transactions, including fees and other expenses.
Saylor further stated that each bitcoin was bought at an average price of $33,808 per unit. The investment firm now holds a total amount of 71,079 bitcoins in its portfolio. This adds up to an average price of $16,109 per bitcoin. Looking at the current value of Bitcoin, the Microstrategy BTC portfolio is worth $2.4 billion. This represents a 100% return on investment for the company that only began holding BTC in August.
Microstrategy is regarded as one of the biggest bitcoin hedge funds in the world alongside Grayscale. The firm initially made its first foray into the crypto market in August but has continued to accumulate Bitcoins since then. It made the news when it purchased $650 million worth of bitcoins in December of 2020. Led by Michael Saylor, it is expected that the company will make more purchases in the coming weeks.
Bitcoin Price Stable Despite Increasing Institutional Adoption
Bitcoin began the year like a house on fire, with the coin adding over $15,000 to its value in just three weeks. This was buoyed by the massive institutional adoption towards the end of 2020, which hit a record high. Bitcoin’s price has been unusually stable in the past week. The leading coin has largely hovered between the $33,000 and $35,000 mark during this period. According to some analysts, this period is important for the coin to take the next major step.
Despite the recent drop in the value of Bitcoin, it has not dampened the interest of institutional investors. This latest purchase by Microstrategy suggests that the investment firm believes that BTC is undervalued and will soar in value.