MicroStrategy bought an additional 8,957 BTC in Q3, the company has announced.
The firm revealed the significant increase in its Bitcoin holdings in its third-quarter 2021 financial results released on 28 October.
According to the report, the company’s BTC haul averaged $46,876 and cost a total of about $420 million. The purchase price included fees and other expenses, with some of the coins likely bought at lower prices following the benchmark cryptocurrency’s slump to lows of $40k in September.
MicroStrategy first bought Bitcoin in Q3 2020, sparking an institutional scramble for the crypto as it rallied to break the record highs set in 2017.
In October 2020, Saylor revealed that he personally held 17,732 BTC bought at an average price of $9,882. According to him, the company knew of this position even before it decided to start buying BTC.
Buy more Bitcoin
MicroStrategy’s Bitcoin holdings have increased steadily since Q3 2020 when the company held about 38,250 BTC. After jumping to 70,469 BTC in Q4 2020, the company added more at the beginning of the year to break the 100k mark.
As of 30 September, the firm held a total of 114,042 BTC, with cumulative holdings totaling about $5 billion. At current prices of about $60,755, the firm’s total holdings are worth about $6.9 billion.
But according to the financial report, MicroStrategy plans to buy more Bitcoin as part of its corporate strategy. The company will look to use its excess cash flows to acquire more bitcoin, it noted in the document and has also earmarked debt and equity transactions as a source of funds for future acquisitions.
Other than that, the company plans to hold Bitcoin long-term, highlighting CEO Michael Saylor’s belief that Bitcoin’s price is set to go even higher.
Importantly, MicroStrategy wants to use its position as one of the top holders of Bitcoin to “provide leadership among the Bitcoin community.”
As of writing, Bitcoin price is attempting to establish support above $60,000 after another explosive run in October saw it hit a record high above $67,000.
