MicroStrategy Buys Additional 229 BTC for $10M in Cash

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In Brief
  • MicroStrategy purchased an additional 229 bitcoin for $10 million in cash.

  • This follows its purchase of another 271 BTC for $15 million less than a week ago.

  • CEO Michael Saylor continues to buy the dip caused by Tesla dropping bitcoin payments.

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MicroStrategy has purchased an additional 229 bitcoin (BTC) for $10 million in cash, according to an announcement by CEO Michael Saylor.

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MicroStrategy holds 92,079 BTC, which it acquired for $2.251 billion, at an average of $24,450 per BTC. This purchase followed less than a week after the company acquired another 271 BTC for $15 million. At that point, the company paid an average of $55,387 per BTC, while now each was $43,663.

The company’s strategy in BTC has not waned, and it is buying the dip apparently caused by Tesla dropping bitcoin payments.

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Saylor’s spat with Musk

Tesla CEO Elon Musk announced that Tesla would suspend accepting bitcoin as payment due to environmental concerns in a tweet-embedded message. The message highlighted the “rapidly increasing use of fossil fuels for bitcoin mining and transactions.”

Saylor took issue with that logic in a reply tweet. He called the move “ironic because no incremental energy is used in a bitcoin transaction.” He clarified, adding that its net impact on fossil fuel consumption over time would be negative. Although Musk did not reply to this assertion, he later made a reply of his own to a message of Saylor’s.

On May 16, Saylor posted a YouTube video on Twitter, in which he put forward his argument about bitcoin’s energy usage. “There is no more efficient technology for converting energy into prosperity,” the tweet summarized.

MicroStrategy’s financial results

Meanwhile, MicroStrategy recently announced their first quarter financial results. The company’s total revenues for Q1 2021 were $122.9 million, a 10.3% increase year-on-year. Additionally, its gross profit amounted to $100.4 million. 

The report was eagerly anticipated to see how the company had fared with its bitcoin strategy. At the time it held 91,579 BTC, which amounted to over $5 billion. During the first quarter of 2021, the company bought 20,857 BTC, for a total of $1.086 billion.

The average purchase price was $52,087 per BTC. Saylor concluded the announcement saying that the company would continue to pursue its bitcoin strategy.

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Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage. He can best be described as an optimistic center-left skeptic.

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