Software and services company MicroStrategy has seen its stock soar to a two-year high after the company announced it had purchased an additional $50 million worth of Bitcoin (BTC).
The move continues what has been a large trend among companies looking to gain exposure to digital assets and has seen MicroStrategy become the first public firm to convert a substantial amount of its treasury holdings into BTC. The price of MicroStrategy stock was up more than 20% in the wake of the announcement.
Since the start of its Bitcoin buying spree back in August 2020, MicroStrategy has now purchased a total of $1.69 billion worth of Bitcoin, making it one of the most prominent corporate adopters of BTC.
The company now holds a total of 91,579 BTC, worth around $4.3 billion at current prices. Despite the soaring stock price, the new Bitcoin holdings are still not valued on the company’s balance sheet.
MicroStrategy’s CEO Michael Saylor believes BTC is a premier asset for corporate treasury management. The company’s continued commitment to BTC has led some to compare it to Goldman Sachs’ new bitcoin trading desk.
The stock surge has also come in the middle of a big week for the cryptocurrency industry, with Coinbase’s debut on the Nasdaq and a big announcement from payments company Square. Microstrategy’s stock gains are a sign that the institutional adoption of Bitcoin is picking up pace.