MicroStrategy has announced an additional Bitcoin purchase worth $1.026 billion, days after finalizing another sale of convertible debt. The enterprise software company said that it paid an average price of $52,765 per bitcoin, including fees and other expenses. Its acquisition of approximately 19,452 bitcoins puts the company’s total holdings of BTC at 90,531. The latest Bitcoin purchase was conducted via Grayscale Bitcoin Trust.
MicroStrategy announced its first bitcoin purchase in August 2020 using existing cash on its balance sheet to acquire the flagship cryptocurrency.
Since then, the enterprise software company has completed two convertible debt offerings to raise funds for purchasing the cryptocurrency. Its most recent offering was processed just last week, generating roughly $1.03 billion in net proceeds with the notes bearing a 0% coupon rate.
The company has revealed that as of 24 Feb, it holds 90531 bitcoins acquired for $2.171 billion at an average price of $23,985 per bitcoin.
In its announcement statement, the company stated:
"The company now holds over 90,000 bitcoins, reaffirming our belief that bitcoin, as the world's most widely-adopted cryptocurrency, can serve as a dependable store of value. 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."
Shares of MicroStrategy were higher by more than 8.5 % in yesterday’s trading session. However, the company’s stock prices did drop down by over 20% on Feb. 23 as the price of BTC faced price corrections.
Despite this, MicroStrategy’s stock had been on a poor performance since the company announced its initial Bitcoin purchase in August. Since its investment in the flagship cryptocurrency, the company’s stock valuation has risen up by over 400%.
MicroStrategy's CEO Michael Saylor has become a leading bitcoin advocate, calling out other companies to add the cryptocurrency to its balance sheet.