MicroStrategy Buys $100 Million Bitcoin

Microstrategy has bought close to $100 million worth of bitcoin this month up to December 29th the company said.

They bought 1,914 bitcoin, currently worth $90 million, for $94.2 million in cash at the average price of $49,229 per bitcoin between December 9th and December 29.

That brings their total holdings to 124,391 bitcoin, or 6.5% of the total supply, worth $5.9 billion at the current price.

They bought them for $3.75 billion at an average price of $30,000. So they’ve made a profit of $2 billion as it stands.

The company appears to be taking a Dollar Cost Averaging (DCA) approach by buying during dips. Sometime they might buy high thus and sometime low, averaging the cost instead of trying to time the market.

They also allocate a certain amount of their profits to bitcoin, which they hold as a reserve asset in their treasury reserves, making this the first company to take this approach.