# Last week, MicroStrategy raised a billion dollars to buy Bitcoin, today they completed that purchase

Early last week, MicroStrategy announced that they were going to buy over a billion dollars in bitcoin, and today they completed that purchase.

More on the announcement can be seen here:

https://hive.blog/hive-167922/@jrcornel/microstrategy-now-plans-on-buying-roughly-usd1-billion-worth-of-bitcoin

The completion of the purchase occurred today with MSTR purchasing 19,452 bitcoin with $1.026 billion in cash at an average price of $52,765 per bitcoin. 

As of 2/24/2021, MSTR now holds 90,531 bitcoin acquired for roughly $2.171 billion at an average purchase price of $23,985 per bitcoin.

Interestingly enough the amount of bitcoin MSTR holds makes them the 6th largest bitcoin holder in the world.

Here's the official announcement from today:

![image.png](https://images.hive.blog/DQmVr77Mdd8yjbKDHBHuAxnWhYpdpCXUz1375rjyr3Bb7zh/image.png)

![image.png](https://images.hive.blog/DQmcsNs2Q381NAnLhv3okkvvkXhdBcZiazc6yR9ubGbtvCP/image.png)

(Source: https://www.microstrategy.com/en/investor-relations/press/microstrategy-acquires-additional-19452-bitcoins-for-1-026-billion_02-24-2021)

By far the most important part of this announcement...

>"We will continue to pursue our strategy of acquiring bitcoin with excess cash and we may from time to time, subject to market conditions, issue debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase additional bitcoin.” 

# Why did they announce the completion today instead of Friday?

If you recall, MSTR announced that they acquired the funds on Friday morning of last week and they planned to immediately buy bitcoin with those funds...

At the time bitcoin was trading around $55k.

So, how did MSTR buy them with a cost average around $52.7k then when the price was higher than that on Friday?

My guess is that MSTR bought the bitcoin the same way he bought them the last time, acquiring thousands of dollars worth of bitcoin every second using a high frequency proprietary algorithm.

This lets them get large amounts of money into bitcoin without moving the markets much or tipping off other traders to the size of their investment.

My guess is that the algorithm was buying all weekend and the past couple days acquiring bitcoin at all sorts of prices from Friday until now.

With the average purchase price being that $52.7k they reported.

The really neat thing about that is that if you buy today, right now, you can buy in cheaper than both MSTR and Square bought their roughly $1.2 billion worth combined.

https://hive.blog/hive-167922/@jrcornel/square-bought-another-usd170-million-worth-of-bitcoin

My favorite part of this announcement is that MSTR says very clearly their business strategy is to keep buying more and more bitcoin with the intention of doing debt offerings from time to time to pick up even more should the market dip.

Nothing like have a buyer of last resort at our back!

In terms of price action, I suspect we are going to now chop around between about $55k and $44k for the next several weeks before ultimately breaking out and heading back towards new all time highs.

If I had to guess, I'd say it probably happens before the end of March.

Stay informed my friends.

-Doc

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