Betting on bitcoin, two companies buy more than $ 1 billion | Finance

The price of bitcoin (BTC) rose again to above $ 50,000 after two major purchases of the asset were announced on Wednesday (24). MicroStrategy, the enterprise software company, revealed that it acquired the equivalent of $ 1 billion in cryptocurrency. Meanwhile, Jack Dorsey’s finance and payments firm Square has also reported that it has invested $ 170 million in the crypto.

Bitcoin recovers after historic crash (Image: MichaelWuensch / Pixabay)

MicroStrategy has more than 90 thousand BTC

Already known as one of the companies that has the most bitcoin in the world, MicroStrategy has now bought 19,452 BTC under the price of $ 52,765 (with all taxes included). In total, the American company spent $ 1.026 billion on the investment. It is one of the largest asset purchases in history, second only to Tesla, which in early February bought $ 1.5 billion BTC.

Now, the software company has an equity totaling 90,531 BTC, amounting to about $ 4.7 billion in cryptocurrency. However, in an official statement, the company revealed that, due to its history of buying bitcoin, it disbursed a total of $ 2.171 billion, an average expenditure of $ 23,985 for each digital currency. Given the current price of the asset, the company has already managed to double its investment.

“The company remains focused on our two corporate strategies for growing our business analytics and bitcoin acquisition and maintenance business,” said Michael J. Saylor, CEO of MicroStrategy.

Despite billionaire gains, the company reiterates that its goal is to use cryptocurrency as a store of value. “Square now has over 90,000 BTC, reaffirming our belief that bitcoin, as the most widely adopted cryptocurrency in the world, can serve as a reliable store of value,” concludes Saylor.

Square makes second major investment in BTC

Twitter CEO Jack Dorsey is publicly an advocate of bitcoin. His finance and payments company Square has now announced a new investment in cryptocurrency. This time, US $ 170 million was spent on the purchase of 3,312 BTC, as revealed by a company report on Wednesday.

Square bought each bitcoin for the price of $ 51,236, somewhat cheaper than MicroStrategy. This is a contribution three times greater than his first public investment in cryptocurrency. In October 2020, Dorsey’s company revealed its first $ 50 million purchase of the asset, marking its entry into the market.

“In line with the company’s purpose, Square believes that cryptocurrency is an instrument of economic empowerment, providing a way for individuals to participate in a global monetary system and ensure their own financial future,” the company said in the statement.

In addition, the company reaffirmed its support for crypto: “The investment is part of Square’s ongoing commitment to bitcoin”. The company revealed that it plans to evaluate its applications to make cryptocurrency an ongoing factor in its finances.

Bitcoin recovers after historic drop

In the past 24 hours, bitcoin has appreciated by more than 6,000 and has returned to the $ 50,000 level. This week the cryptocurrency suffered two major declines, one of them becoming the biggest daily devaluation in the asset’s history.

The retractions on Monday and Tuesday came after speeches by Elon Musk and the US Treasury Secretary. The Tesla owner said on Twitter that bitcoin and ether prices would be “really high,” which was quickly interpreted as cryptocurrencies being overvalued.

Meanwhile, Janet Yellen, US Treasury Secretary, has reiterated that bitcoin favors illegal activities. In addition, she also said that the cryptocurrency is “extremely inefficient for transactions” and that it is concerned with “the potential losses that investors may suffer”.

Even so, the acquisitions of two large companies have resumed investor confidence in cryptocurrencies. After the announcements from Square and MicroStrategy, bitcoin jumped from the low price of $ 45,275 to the day’s high of $ 51,445, as the index points out CoinDesk. The recovery remains stable, and the asset continues to operate at around $ 50,000 at the time of this publication.

With information: CoinDesk, The Verge

Leave a Comment