MicroStrategy buys another $250m worth of bitcoin in hope of 100X price growth

CEO Michael Saylor believes the cryptocurrency will ‘subsume the entire gold market cap’

Microstrategy announced the acquisition of more bitcoins on 13 September, 2021 (MicroStrategy)

Software firm MicroStrategy has announced the acquisition of nearly a quarter of a billion dollars worth of bitcoin.

Chief executive Michael Saylor revealed that his company now holds more than $5 billion of bitcoin, making it by far the biggest corporate investor in cryptocurrency.

Tesla is the second largest holder, having bought $1.5 billion worth of bitcoin earlier this year.

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Mr Saylor has previously outlined his twin corporate strategy of developing MicroStrategy’s software business while simultaneously “acquiring and holding bitcoin” with excess cash.

As one of the most popular and outspoken advocates of bitcoin on social media, Mr Saylor has become known for his bullish price predictions and his refusal to sell any of the company’s holdings even when its value crashes.

Bitcoin currently has a market cap of around $850 billion, however Mr Saylor believes it has the potential to “flip gold”, which has a market cap in excess of $11 trillion.

“[Bitcoin] is going to subsume the entire gold market cap,” he told CNBC earlier this year.

“Once it gets to $10 trillion, its volatility will be dramatically less. As it marches towards $100 trillion, you’re going to see the growth rates fall, the volatility fall, and it’s going to be a stabilising influence on the entire financial system of the 21st century.”

MicroStrategy bought the latest bitcoin between 1 July and 12 September when the price of the cryptocurrency was slightly higher than it is currently.

“MicroStrategy has purchased an additional 5,050 bitcoins for ~$242.9 million in cash at an average price of ~$48,099 per bitcoin,” he tweeted.

The latest purchase means the company has now spent more than $3.1 billion on the cryptocurrency and brings the company’s total holdings to 114,042 bitcoins.

At current rates, this is worth roughly $5.1 billion.