The bitcoin price is currently hovering below $50,000 per coin, which is not exactly how the crypto bulls were predicting the fourth quarter would play out. Nevertheless, bitcoin investors are accustomed to market volatility, while market leaders are even using it as an opportunity to buy the dip.
One of those bitcoin bulls is Michael Saylor, CEO of enterprise software company MicroStrategy. He has been scooping up bitcoins all year and has an impressive track record. In this latest market cycle, however, he missed the bottom slightly.
MicroStrategy has purchased an additional 1,434 bitcoins for ~$82.4 million in cash at an average price of ~$57,477 per #bitcoin. As of 12/9/21 we #hodl ~122,478 bitcoins acquired for ~$3.66 billion at an average price of ~$29,861 per bitcoin. $MSTRhttps://t.co/Xke8QhoYpy— Michael Saylor⚡️ (@saylor) December 9, 2021
Saylor announced that his company has just plunked down $82.4 million in cold hard cash for another 1,434 bitcoins. This brings the tally of the bitcoins held on MicroStrategy's balance sheet to 122,478, the total amount paid for which has been a cool $3.66 billion.
MicroStrategy only started adding bitcoins in August 2020, so all of this activity has unfolded in less than a year and a half. The company's market cap is $6.6 billion, while its bitcoin holdings are worth approximately $5.9 billion based on the latest BTC price.
Timing Is Everything
This time, MicroStrategy bought the BTC between Nov. 29 and Dec. 8. Saylor noted the average price paid for bitcoin this go-round, which was $57,477. That seems like a bargain compared to the bitcoin peak of roughly $69,000. Since making that fresh all-time high on Nov. 10, however, the bitcoin market has experienced a downdraft, shaving close to one-third off its value.
MicroStrategy's latest buying spree started when bitcoin was trading at about $57,000-58,000 per coin. If they had waited just a few days more, they could have done even better because that's when the “crash” happened. Nonetheless, Saylor has his sights set on the long game and is likely not too worried about short-term blips in the bitcoin price.
Photo Credit: TradingView.
Saylor was a first-mover to adopt bitcoin for the company's balance sheet and has inspired other CEOs to take a page out of his book. Jack Dorsey, CEO of Square, which was recently rebranded as Block, has also added bitcoin to the payment company's treasury, while Elon Musk has done the same for Tesla, spending $1.5 billion in early 2021 for the stash. Musk revealed that Tesla later sold approximately “10% of holdings to confirm BTC could be liquidated easily without moving market.”
Musk is pushing for more sustainable bitcoin mining practices, which is the process by which new bitcoins are created and transactions are confirmed on the blockchain. MicroStrategy's Saylor is the architect of the Bitcoin Mining Council, which he started to promote transparency within the bitcoin mining industry.
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