Per a report from the Cambridge Center for Alternative Finance (CCAF), fossil fuels have been the primary energy source for BTC mining since the start of the year. The CCAF recently updated its Cambridge Bitcoin Electricity Consumption Index (CBECI). Its study claims that 62% of all the energy the leading token has consumed so far consists of coal-based energy. BTC’s Energy-Intensive Mining Bitcoin employs the proof-of-work consensus mechanism to create new tokens and validate transactions on the blockchain. The PoW…
The world’s largest independent publicly-traded business intelligence company, MicroStrategy, has completed the purchase of 29,646 more Bitcoins for approximately $650 million.
$1 Billion Worth Of BTC Purchased In 2020
MicroStrategy revealed this latest purchase in a press release today and revealed more information on their current asset holdings. According to the investment firm, the latest purchase was in cash according to its treasury reserve policy.
In total, this latest round of Bitcoin investments aggregated out to $650 million, including fees and other expenses. The Bitcoins were purchased for approximately $21,925 per unit, inclusive of fees and expenses. At the moment, the investment company holds an aggregate amount of around 70,470 bitcoins purchased at approximately $1.125 billion. The average purchase price is approximately $15,964 per Bitcoin, inclusive of fees and expenses.
MicroStrategy has rapidly continued to increase its holdings in Bitcoin since making an initial purchase in August. This latest Purchase is part of its larger strategy to increase reserves by holding up assets in bitcoins.
Speaking on the development, Michael J. Saylor, CEO of MicroStrategy, reaffirmed Bitcoin’s belief. According to Saylor, Bitcoin is the world’s most widely adopted currency and represents a dependable store of value. ”We believe the proactive management of our balance sheet, combined with the improved revenue and profitability performance of the Company, have been significant factors in the recent appreciation in our stock price.”
Institutional Adoption Of Bitcoin Continues
Institutional adoption of Bitcoin has hit record levels in 2020, with more financial firms investing in the leading coin. The bullish run of Bitcoin in the midst of economic uncertainty has seen it emerge as a hedge against inflation.
Leading digital asset management firm Grayscale bought $241 million BTC in early November. The purchase increased the total stake of Grayscale to 2.29% of the total market supply of Bitcoin. American insurance firm Massachusetts Mutual Life Insurance (MassMutual) also joined the train by purchasing $100 million worth of BTC. This latest MicroStrategy purchase shows that the hype is not over, and more institutions could join in the coming months.