- MicroStrategy has bought 271 Bitcoin for $15 Million
- Each Bitcoin was bought at an average price of $55,387
- MicroStrategy now holds 91,850 Bitcoin purchased at a total of $2.241Billion and at an average entry price of $24,403
- The Bitcoin is now twice the initial investment at $4.592 Billion
- Bitcoin is currently attempting to reclaim $50k after Tesla stopped accepting Bitcoin for car purchases
The business analytics company of MicroStrategy has just announced that it has bought an additional 271 Bitcoin worth $15 million at an average entry price of $55,387. With this purchase, MicroStrategy now holds 91,850 Bitcoin purchased at roughly $2.241 Billion with an average entry price of $24,403.
The CEO of MicroStrategy, Michael Saylor, made public the most recent purchase through the following Tweet.
MicroStrategy has purchased an additional 271 bitcoins for $15.0 million in cash at an average price of ~$55,387 per #bitcoin. As of 5/13/2021, we #hodl ~91,850 bitcoins acquired for ~$2.241 billion at an average price of ~24,403 per bitcoin. $MSTRhttps://t.co/EwZnRkAt6k
— Michael Saylor (@michael_saylor) May 13, 2021
MicroStrategy’s Bitcoin Bag is Worth 2x the Initial Investment
Further doing the math, the 91,850 Bitcoin owned by MicroStrategy has a market value of $4.592 Billion using the current Bitcoin level of $50k. This, in turn, means that the initial investment of $2.241 Billion has appreciated in value by a factor of 2.049x and MicroStrategy is now 104.9% in profits.
Bitcoin Dips to $46k, Struggles to Reclaim $50k
At the time of writing, Bitcoin is trading at $50,100 after a nerve-wracking dip to $46k earlier today. Prior to the dip, Bitcoin was trading at $57k and the fast and furious pullback was worth $11k or 19.29%.
The Bitcoin dump was attributed to Elon Musk tweeting that Tesla would no longer be accepting Bitcoin for car purchases due to the amount of energy consumed when mining BTC.
Elon Musk went on to explain that Tesla will not be selling any of its Bitcoin and will revert to using BTC for transactions as soon as mining is more sustainable. His full statement can be found below.
Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.
Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment.
Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.
[Feature image courtesy of Unsplash.com]