Even if MicroStrategy invests the full $500 million, it won’t be its biggest Bitcoin acquisition. The company set a record in February 2021, when it bought 19,452 bitcoins worth $1.026 billion. Accordingly, the average purchase price of the coin was $52,765, which is quite amusing considering the current value of the cryptocurrency.

MicroStrategy’s bitcoin purchase chart

The average bitcoin purchase price by the company as a whole is $30,658. Accordingly, MicroStrategy’s investment is down 27 per cent today, which is equivalent to $1.08 billion.

The financial performance of MicroStrategy’s Bitcoin investment

Michael Sailor himself is behaving quite typical of a Bitcoin-maximalist, that is, someone who believes BTC is the only full-fledged cryptocurrency and sees no point in the existence of other coins. In particular, the day before he called the Lightning Network the most important technology in the world, which doesn’t sound particularly convincing. And then stated that he still needs even more bitcoins.

MicroStrategy’s Michael Saylor’s tweet on the need for more bitcoins

Which company has the most bitcoins

The day before, the company struck a deal with two partners in Cowen Inc. and BTIG. All this was necessary to sell its Class A shares worth $500 million. Information about it appeared in documents filed by MicroStrategy with the US Securities and Exchange Commission (SEC).

Part of MicroStrategy’s filing with the SEC, which deals with Bitcoin

According to Cointelegraph sources, the following quote is in the filed documents.

We intend to use the net proceeds from the sale of any Class A common shares offered in this transaction for general corporate purposes, including the acquisition of Bitcoin, unless otherwise stated in the relevant supplement.


Accordingly, it's likely that at least part of the proceeds will be used to buy BTC. Does such action coincide with the company's course of action? Yes. At the beginning of August, former MicroStrategy executive Michael Saylor announced his retirement from his position - he is now the company's executive chairman.

And such was done, among other things, to allow the entrepreneur to pay more attention to the cryptocurrency. As Michael commented, "in his next position, he plans to focus more on Bitcoin."


Bitcoin price rises after news of MicroStrategy

Investing in cryptocurrency is MicroStrategy’s main strategy for the coming years, with its management confirming this with their actions. The company’s founder Michael Saylor, among others, has already stated this on several occasions. He has hinted that any collapse in crypto is not scaring the firm’s management, with it being willing to devote all available resources to betting on crypto.

On topic: A former MicroStrategy executive has been sued for possible tax evasion. What's going on?

In more positive news to start the week, the Blockchain.com platform has received approval from the Dubai Virtual Asset Regulatory Authority (VARA). That means the platform will now have its own office in the UAE. Currently, the company officially operates in North America, South America, Europe and Singapore.

Blockchain.com

Since Dubai’s Prime Minister and Ruler Sheikh Mohammed bin Rashid Al Maktoum announced the creation of a regulator and accompanying law in March, VARA has issued permits to Crypto.com, OKX and FTX subsidiaries to offer its services in the emirate. In July, Al Maktoum also launched a strategy for the adoption of metasites, which aims to create more than 40,000 virtual jobs in Dubai by 2030.


We believe that such an initiative by MicroStrategy is the right one. Still, Bitcoin is now valued at $22,000, which is 68 percent below the cryptocurrency's all-time high. And in such an environment, it makes more sense to allocate large sums to buying assets - all the more so if a company is willing to hold them long enough. Then again, such a deal would be far more profitable than the billion-dollar bitcoin purchase at $52,000 that MicroStrategy did early last year. So the idea is something to be happy about.