A hot potato: Bitcoin has been on one heck of a run over the past several months and it all got started when financial services company Square spent $50 million, or about one percent of its total assets, to purchase 4,709 Bitcoins back in October. The crypto market got another huge shot in the arm in early February when Tesla revealed a $1.5 billion investment in Bitcoin. Since then, and up until a few days ago, it's been mostly upwards and onwards for the digital currency.
Bitcoin briefly hit an all-time high of just over $58,000 on February 21 before a slide brought the value back down around the $45,000 mark. The dip seemed to be an opportune time for some to reaffirm their commitment to the coin.
Square on Tuesday in its latest earnings report said it has purchased another 3,318 Bitcoins for $170 million. Doing the math, that works out to around $51,236 per coin. When Square bought its first batch of Bitcoins back in October, it paid roughly $10,617 per.
Looking at that initial $50 million investment alone, it has grown to more than $231 million in less than five months.
Business intelligence firm MicroStrategy, meanwhile, has also grown its Bitcoin holding substantially. On Wednesday, the company announced the purchase of 19,452 Bitcoins for $1.026 billion in cash, which works out to an average price of approximately $52,765 per. According to CoinDesk, MicroStrategy's investment is the second-largest single (known) dollar investment in crypto by a US company behind Tesla.
With the latest purchase, MicroStrategy now owns 90,531 Bitcoins. According to the company, the average purchase price of each coin works out to $23,985, inclusive of fees and expenses.