Software company MicroStrategy has continued to bolster its Bitcoin (BTC) holdings, and has acquired a total of 7,002 BTC during its fourth fiscal quarter this year, the company said in an investor notice on 29 November.
According to the company’s filing, during the period between 1 October and 29 November, MicroStrategy purchased a total of 7,002 BTC for approximately $414.4 million, at an average price of about $59,000 per coin. With this latest acquisition, MicroStrategy now securely holds a total of 121,044 Bitcoin, which is around $7 billion with the current price of the largest cryptocurrency by market cap.
In its Monday filing, MicroStrategy also revealed that it had sold 571,001 shares of the company’s stock at $732 a piece during its fourth fiscal quarter, raising a total of $414.4 million in cash. The company announced in August 2020 that Bitcoin will become its primary treasury reserve asset, saying it was a “legitimate investment asset that can be superior to cash”.
MicroStrategy’s bet on Bitcoin appears to be paying off for now, seeing as the company has bought all of its 121,044 BTC at an average price of about $29,534 per coin. At the moment the price of Bitcoin is hovering around $57,500, meaning the company is currently sitting on a potential profit of more than $3 billion. If the price of the currency is to plunge far enough however, the company could begin to struggle to pay its $2 billion debt it took to purchase some of the Bitcoins.