The company’s founder and CEO, Michael Saylor, announced Monday that the US-based enterprise software company MicroStrategy Inc has purchased about 253 bitcoins for $ 15 million in cash at an average price of about $ 59,339 each.
As of April 5, the company has approximately 91,579 bitcoins purchased with a total purchase price of $ 2.226 billion, including fees and expenses, and an average purchase price of about $ 24,311 per bitcoin.
At the current price, the total value of MicroStrategy’s bitcoin holding is around $ 5.31 billion. Bitcoin was trading at $ 57,976.64 at 6.45pm IST, after moving in the range of $ 56,929.20-58,413.08 in the past 24 hours, according to CoinGecko. The digital asset has a market value of about $ 1.1 trillion.
MicroStrategy is one of the oldest institutional backers of the world’s oldest and largest cryptocurrency. The company said in August 2020 that it used the existing money on its balance sheet to buy the cryptocurrency.
Moreover, Tesla announced in February that it invested $ 1.5 billion in digital currency. It is the largest company that does not yet support the cryptocurrency platform.
Over the past fiscal year, major global companies such as Goldman Sachs, BNY Mellon, BlackRock, MasterCard, PayPal, and Visa have supported the cryptocurrency.
Thanks to institutional demand, Bitcoin generated returns of over 800% in the 2020-21 fiscal year. From $ 6,641 on April 1, 2020, the price of the digital currency approached an all-time high of $ 61,711.87 throughout the year (reached on March 13, 2021).
Vikram Rangala, marketing manager of ZebPay:
“Last week we saw major payment providers like PayPal and Visa offering new crypto services to their millions of users. Visa announced the completion of transactions in USDC, an ethereum-based cryptocurrency for its partners, backed by the US dollar. PayPal offered payment options in four different cryptocurrencies – bitcoin, ethereum, litecoin, and bitcoin Cash.
These gateways are easier for many users than using crypto addresses, when companies use cryptocurrencies to improve products and services, this is stronger than just trading and speculating on the price.