MicroStrategy Purchases Additional $1B Worth of Bitcoin
- This is MicroStrategy’s fourth and largest Bitcoin purchase to date.
- Unlike previous investments, the latest $1 billion purchase was made in cash.
MicroStrategy headquarters in McLean, Virginia on 20 April 2019. Shutterstock
The company announced its latest purchase in a press release published on 24 February, saying it will continue to pursue its strategy of acquiring Bitcoin. Michael Saylor, the CEO of MicroStrategy, said this further reaffirms the belief that Bitcoin can serve as a dependable store of value.
According to the official release, MicroStrategy paid an average price of $52,765 per bitcoin, including fees and other expenses.
Back in August 2020, the company revealed its first Bitcoin purchase. At the time, MicroStrategy invested $250 million of its inflation-hedging funds to purchase a total of 21,454 BTC. In December that year, the company raised $537 million in capital to invest in Bitcoin, purchasing approximately 29,000 BTC.
The company completed another convertible debt offering in February 2021, raising an additional $600 million to acquire more BTC.
As of press time, the company has cumulatively spent $2.171 billion on BTC, with an average purchase price of $23,985 per token. At a price of $49,200 per token, MicroStrategy’s Bitcoin reserve is worth over $4.45 billion.
- MicroStrategy revealed on Monday it had purchased a total of 7,002 BTC for $414 million during its fourth fiscal quarter this year.
- Currently holding 121,044 BTC, worth almost $7 billion, the company is sitting on a potential profit of more than $3 billion.
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- Qualified institutional investors will soon have the opportunity to purchase $600 million worth of aggregate principal amount of convertible senior notes due 2027.
- Initial purchasers of the notes could also have the option of buying an additional $90 million within a 13-day period from when the notes were first issued.
- Unsecured senior obligations of the company will be sold to private institutional investors up until 11 December.
- At current valuation, MicroStrategy expects to add another 29,000 BTC to its crypto holdings, pushing their reserve to over 70,000 BTC.