Last Updated: 2 July 2022
It has happened again. Michael Saylor, the company’s CEO, saw an opportunity to reduce the average purchase price of his bitcoins. Microstrategy has, in fact, bought a large number of bitcoins again.
Large number of purchases
It is no longer unknown that Microstrategy owns a large number of bitcoins. The CEO of the company is a big bitcoin fanatic who can often be seen on TV or in podcasts and also lives by his bullish statements on the largest crypto currency.
Indeed, the company has bought bitcoins so often that we as a news platform have had to write headlines such as ‘Microstrategy invests another 650 million dollars in bitcoin.’ Michael Saylor and his company do this so often that we might as well consider these articles a tradition.
Bought again this week
The most recent purchase took place on Wednesday. Microstrategy then bought 480 bitcoins at a price of about 10 million dollars (9.6 million euros). Therefore, we thought it was time to write not only about the latest purchase but about the total amount and the average purchase price too.
To begin with, it is important to mention that Michael Saylor and his company are in loss with their bitcoin purchases. There have been many dips that the company bought, but as we all know now, bitcoin has fallen much further.
The last purchase was at a price of around $20,800 (€19,950) per bitcoin. This brought the average down considerably, as Michael Saylor reports that the average purchase price – of all Microstrategy’s bitcoins – is now about $30,600 (€29,350).
How much did Microstrategy lose through bitcoin?
The company’s last purchase was 480 bitcoin. That is a lot for a private individual but for a company such as Microstrategy, it is a fraction of the whole. This purchase represented only 0.4% of their entire bitcoin stock.
MicroStrategy has purchased an additional 480 bitcoins for ~$10.0 million at an average price of ~$20,817 per #bitcoin. As of 6/28/22 @MicroStrategy holds ~129,699 bitcoins acquired for ~$3.98 billion at an average price of ~$30,664 per bitcoin. $MSTRhttps://t.co/leQYTXn817
— Michael Saylor⚡️ (@saylor) June 29, 2022
In total, this means an entire stock of almost 130,000 bitcoins, purchased for a total value of almost 4 billion dollars. And then, of course, you think: what would the loss be?
With the average purchase price of 30,600 for 130,000 bitcoins, that amounts – at a current price of 19,000 – to a loss of approximately 1.5 billion dollars (1.44 billion euros).