Michael Saylor, the CEO and founder of the business intelligence company MicroStrategy, has announced that the company has spent another $94.2 million to acquire an additional 1,914 bitcoins. The company now holds 124,391 bitcoins acquired for an average price of $30,159.
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In total, the company has spent $3.75 billion on its massive cryptocurrency holdings. At today's prices, those 124,391 bitcoins are now worth $5.88 billion, giving the company a return of around 56% on its investment in the short time it has been buying bitcoin in August of 2020.
In reaction to the news, both the price of bitcoin and MicroStrategy shares rose by 1.77% and 2.32%, respectively.
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The purchase comes at a time of uncertainty in the cryptocurrency marketplace. While the price of bitcoin has far outpaced traditional assets and has risen by 60.78% year-to-date, it has dropped roughly 30.93% from its all-time high of around $69,000.
Other coins have experienced similar trends, likely as a reaction to bitcoin's moves as it remains the most dominant cryptocurrency in the market. Ethereum, the second-largest cryptocurrency by market capitalization, has dropped as much as 22.13% from its all-time high of almost $4,900. In mid-November, the market capitalization of the entire crypto market reached nearly $3 trillion and has since fallen to $2.22 trillion.
Reasons for the crypto market's drop range from the new omicron Covid-19 variant, speculation on potential new regulations for the market and environmental concerns.