MicroStrategy, the business intelligence firm, has added to its Bitcoin (BTC) holdings, reaffirming CEO Michael Saylor’s bullish outlook on digital asset despite its recent struggles.
It has been reported that in a Form 8-K filing with the United States Securities and Exchange Commission (SEC), Microstrategy disclosed that it had acquired an additional 480 BTC at an average price of around $20,817. The total purchase amount was $10 million in cash. With the purchase, MicroStrategy now holds 129,699 BTC, making it the largest corporate holder of Bitcoin.
However, the total value of its holdings is around $3.98 billion. The business intelligence firm is scooping up Bitcoin during a period of extreme market volatility. On Wednesday, Bitcoin’s price briefly dipped below $20,000, which is more than $10,000 lower than the company’s average acquisition price.
The report said that the company’s BTC stash is currently sitting at a net unrealized loss of nearly $1.4 billion, according to data provided by Bitcoin Treasuries. Michael Saylor, the firm’s CEO, remains bullish on Bitcoin’s long-term prospects. Earlier this month, he told his 2.5 million Twitter followers that the firm plans to “HODL through adversity” and has no plans to offload its holdings.
Thus, the bullish reaffirmation came amid rumors that the company risked a margin call if Bitcoin’s price fell below $21,000. According to Saylor, the margin call rumor is a “nothing issue.” MicroStrategy reported first-quarter revenues of $119.3 million. Gross profit for the quarter was $93.6 million.
Source: Cointelegraph