MicroStrategy buys 4,167 BTC for $190 million

MicroStrategy CEO Michael Saylor announced a new purchase of BTC by the company. According to Saylor, 4,167 BTC were acquired at a total price of US$190 million. Each BTC was purchased at an average price of $45,714.

MicroStrategy buys 4,167 BTC

As a result, the company now has 129,218 BTC in cash, by far the largest amount held by a listed company. Of this total, about 115,000 BTC are in the custody of MacroStrategy, a subsidiary of the company that handles cryptocurrency operations.

The new purchase was made after the company obtained a loan of US$ 205 million from the bank Silvergate. Money was obtained on March 30, that is, the company probably made the purchase in the last six days.

MacroStrategy has purchased an additional 4,167 bitcoins for ~$190.5 million at an average price of ~$45,714 per #BTC. As of 4/4/22 MicroStrategy #hodls ~129,218 bitcoins acquired for ~$3.97 billion at an average price of ~$30,700 per BTC. $MSTRhttps://t.co/Z45OuJU5KI

—Michael Saylor⚡️ (@saylor) April 5, 2022

In the rhythm of accumulation

With the new acquisition, both Saylor and MicroStrategy remain firm in their “eternal hold” strategy. The CEO has already made it clear on several occasions that he does not intend to sell any of the BTC purchased so far.

Since its first BTC purchase in August 2020, MicroStrategy has completed 20 months following this strategy. At first, Saylor stated that the goal was to exchange part of the company’s cash from dollars to BTC.

In this regard, the CEO said he was looking for a more solid and reliable store of value, something he saw in cryptocurrency. On March 30, Saylor stated that BTC has the potential to replace debt securities as the global store of value.

“When sovereign bonds are no longer a store of value, the rational response is to replace bonds with BTC.”

At the same time, low – or even negative – interest rate policies support Saylor’s thesis. German analyst Holger Zschaepist highlighted this difference in his country’s bonds. While interest rates on German bonds are at zero, inflation for the last 12 months has reached 7.3%, the highest level in 30 years.

In other words, bond yields are actually losing value. On the other hand, BTC tends to gain value over time relative to fiat currencies, in Saylor’s view. So the CEO is investing heavily in accumulating more cash.