MicroStrategy adds 301 bitcoins to its balance sheet, according to a Form 8-K filing with the Securities and Exchange Commission.
The Tysons Corner, Virginia, business intelligence software company purchased the bitcoin between Aug. 2, 2022, and Sep. 19, 2022, at roughly $19,851 each, spending $6 million of its excess cash. According to co-founder and executive chairman Michael Saylor, this purchase takes the company and its subsidiary’s bitcoin holdings to 130,000. MicroStrategy now holds almost $4 billion in bitcoin purchased at an average price of $30,639 per bitcoin. It has held bitcoin as its primary reserve asset since 2020.
Before this, the company bought 1,434 BTC in Dec. 2021 and 660 in Feb. 2022.
Saylor’s prints all over recent purchase
Following the announcement, bitcoin analyst Dylan LeClair admired MicroStrategy’s resolve despite the current crypto winter.
“Ton of respect in the conviction,” he tweeted. “But the cost basis would be lower if the deployment strategy came with some more patience,” he added.
Saylor’s time horizon for bitcoin has consistently been long. “If you are going to invest in #bitcoin, a short time horizon is four years, a mid-time horizon is ten years, & the right time horizon is #forever.”
Saylor stepped down as CEO in Aug. 2022 after the company reported a $918 million loss from its bitcoin holdings following the collapse of the TerraUSD stablecoin in May 2022. The losses came from a hefty impairment charge imposed on the company’s bitcoin stash. Accounting rules dictate that the company must sustain an impairment charge if the asset’s value declines within a quarter.
Former MicroStrategy CFO Phong Le took over the reins of CEO from Saylor in Aug. 2022 to run the company’s software business, while Saylor now drives MicroStrategy’s bitcoin-buying strategy.