Independent publicly-traded business software intelligence company MicroStrategy just bought another 29,646 BTC, at $21,925 per coin, pushing the firm’s total bitcoin holding to 70,470 BTC, which is worth more than $1 billion at the time of reporting.
Since the third quarter of 2020, MicroStrategy has been on a Bitcoin buying spree, with the company accumulating as much as it can. Between August and September, the firm purchased $425 million worth of BTC.
Calling Bitcoin a “primary treasury reserve asset,” MicroStrategy doubled down on the cryptocurrency last month, announcing strategies to acquire more Bitcoin through senior convertible notes – debt securities that can be converted into shares of an issuer.
The business intelligence company raised $650 million through the senior convertible notes a few days ago and has committed the entire amount to purchase 29,646 BTC at $21,925 per bitcoin, including fees.
MicroStrategy’s President and CFO, Phong Le, said the company continues to believe that Bitcoin will “provide the opportunity for better returns and preserve the value of our capital over time compared to holding cash.” The company expects to continue generating positive operating income and free cash flow.
Commenting on the acquisition, the company’s CEO Michael Saylor said the move reaffirms MicroStrategy’s views that the world’s leading cryptocurrency is a reliable store of value.
Over the weekend, Saylor had tried to encourage Tesla’s CEO and billionaire Elon Musk to invest his company’s holdings into bitcoin and replace USD with BTC as its primary reserve currency.
“Other firms on the S&P 500 would follow your lead & in time it would grow to become a $1 trillion favor,” he said in a tweet.
Elon Musk replied, “Are those transactions even possible?” to which Saylor replied yes and promised to share his playbook with him offline, “from one rocket scientist to another”
With bitcoin currently trading at $23,000 after hitting an all-time high of $24,200, MicroStrategy is already profiting from the recent purchase as the 29,646 BTC is now worth over $680 million. The company spent approximately $1.125 billion to acquire all 70,470 BTC, which is currently worth more than $1.6 billion at current prices.