MicroStrategy buys additional bitcoin worth $10 million

Bitcoin • January 22, 2021, 9:05AM EST
UPDATED: January 22, 2021, 9:19AM EST
The Block

Nasdaq-listed MicroStrategy announced Friday that it had purchased an additional 314 bitcoin for $10 million in cash.

This brings MicroStrategy's total bitcoin holdings to 70,784 bitcoin, worth more than $2.28 billion at current prices. 

The company's bitcoin bet appears to have paid off well so far. MicroStrategy acquired these bitcoins at an aggregate purchase price of around $1.2 billion and an average purchase price of approximately $16,035 per bitcoin. Currently, bitcoin's price is trading at around $32,300.

MicroStrategy made its first bitcoin purchase in August last year. At the time, the company's CEO Michael Saylor said, bitcoin investments are part of a new capital allocation strategy for maximizing long-term value for shareholders. 

Later, in an interview with The Block, Saylor said bitcoin is the "best money ever created." Saylor compared bitcoin to gold and the U.S. dollar and said the cryptocurrency is a superior asset for a treasury given it is not deflationary by design.

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Yogita Khatri profile picture Yogita Khatri

Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

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