Bitcoin Gains on ETH as 17,000 Bought

Some 17,000 bitcoin has been bought this Monday at an average price of $10,400 per coin.

In total, some $175 million was bought in this block by the publicly traded company, MicroStrategy. Michael Saylor, its founder and chairman, said:

“On September 14, 2020, MicroStrategy completed its acquisition of 16,796 additional bitcoins at an aggregate purchase price of $175 million.

To date, we have purchased a total of 38,250 bitcoins at an aggregate purchase price of $425 million, inclusive of fees and expenses.”

Last month they announced they were to buy $250 million worth of bitcoin and $250 million was to be returned to investors with this company having some $1 billion in assets and half a billion of revenue a year.

Now however the chairman is saying they have bought $425 million already, with it unclear where this other $225 million came from.

They announced a successful tender to buyback $60 million worth of shares, with the company also adopting a resolution that says bitcoin is to serve “as the primary treasury reserve asset on an ongoing basis.”

Meaning this company is kind of going all in on bitcoin, ditching fiat for digital gold, with it previously stating:

“We find the global acceptance, brand recognition, ecosystem vitality, network dominance, architectural resilience, technical utility, and community ethos of Bitcoin to be persuasive evidence of its superiority as an asset class for those seeking a long-term store of value.

Bitcoin is digital gold – harder, stronger, faster, and smarter than any money that has preceded it.

We expect its value to accrete with advances in technology, expanding adoption, and the network effect that has fueled the rise of so many category killers in the modern era.”

Category killer bitcoin has now gained a bit on the ratio against eth, rising to $10,900 while eth wasn’t moving much.

That’s probably primarily because of this cash injection, with MicroStrategy seemingly having more in store for bitcoin.