On Friday (December 4), Michael J. Saylor, Co-Founder, Chairman, and Chief Executive Officer of Nasdaq-listed business intelligence company MicroStrategy Inc. (NASDAQ: MSTR), disclosed that his firm had bought more Bitcoin.
On August 11, MicroStrategy announced via a press release that it had “purchased 21,454 bitcoins at an aggregate purchase price of $250 million” to use as a “primary treasury reserve asset.”
Saylor said at the time:
“Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ― risks that should be addressed proactively.
“Those macro factors include, among other things, the economic and public health crisis precipitated by COVID-19, unprecedented government financial stimulus measures including quantitative easing adopted around the world, and global political and economic uncertainty.
“We believe that, together, these and other factors may well have a significant depreciating effect on the long-term real value of fiat currencies and many other conventional asset types, including many of the assets traditionally held as part of corporate treasury operations.”
Then, on September 14, MicroStrategy disclosed by filing a “Form 8-K“ that it had adopted a new Treasury Reserve Policy, as the result of which its Bitcoin holdings “may increase beyond the $250 million investment that the Company disclosed on August 11, 2020.”
The next day, Saylor provided an update on his company’s investment in Bitcoin:
On September 14, 2020, MicroStrategy completed its acquisition of 16,796 additional bitcoins at an aggregate purchase price of $175 million. To date, we have purchased a total of 38,250 bitcoins at an aggregate purchase price of $425 million, inclusive of fees and expenses.
— Michael Saylor (@michael_saylor) September 15, 2020
On October 27, MicroStrategy had its Q3 2020 earnings call. According to the transcript (provided by The Motley Fool), both Saylor (the company’s CEO) and Phong Le, the company’s President and CFO, were there to provide analysts with additional insights on the Q3 2020 results.
With regard to Bitcoin, the MicroStrategy President said:
- “… during the quarter, we purchased approximately 38,250 bitcoins for an aggregate price of $425 million. This equates to an average price of approximately $11,111 per bitcoin.”
- “Per our treasury reserve policy, you should expect that we will purchase additional bitcoins as we generate cash beyond what we need to run the business on a day-to-day basis or to deploy for other corporate purposes.”
Well, now, it appears that MicroStrategy has invested more of its cash in Bitcoin, this time buying 2,574 bitcoins at a cost of roughly $19,427 per bitcoin.
MicroStrategy has purchased approximately 2,574 bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $19,427 per bitcoin. We now hold approximately 40,824 bitcoins.https://t.co/nwZcM9zAXZ
— Michael Saylor (@michael_saylor) December 4, 2020