dark

MicroStrategy Acquires $490 Million Worth Of Bitcoin

MicroStrategy has been making huge investments in Bitcoin since this year. The enterprise software firm, at the beginning of the month, announced its intention to invest sum $400 million to purchase more of the world’s most famous cryptocurrency. The company seems to be on a quest of holding more Bitcoin and it recently issued convertible bonds worth about $1 billion (which is expected to be used to acquire more Bitcoins) which caused quite a stir up.

Today, MicroStrategy – the largest independent publicly traded business intelligence firm announced that it had acquired about 13,005 Bitcoins in addition to its previous holding. The company revealed that it acquired these Bitcoins for an approximated $490 million in cash at an average price of $37,617 for each Bitcoin and this price is inclusive of expenses and fees that it incurred.

The company’s latest acquisition brings its total holding of Bitcoin to 105,085 Bitcoins. Inclusive of expenses and fees, the company purchased these Bitcoins at an average price of $26,080 per Bitcoin. The company’s subsidiary – MacroStrategy LLC, holds approximately 92,079 Bitcoins.

Last week, Microstrategy completed the $500 million offerings of 6.125 percent senior secured notes. This was announced via a tweet made by the company’s CEO, Michael Saylor, who is known as a huge Bitcoin enthusiast. Via his tweet, the CEO expressed that the company had successfully acquired the Bitcoin it had planned on purchasing.

The company also revealed its intention of raising $1 billion last week. The company plans on doing this through a security offering that would enable its Class A Common Stock of up to $1 billion over a period of time. “We have not determined the amount of net proceeds to be used specifically for any particular purpose. As a result, management will retain broad discretion over the allocation of the net proceeds of any offering”, the company said. The funds could be used to acquire more Bitcoin as the statement did not clearly say what the funds raised would be used for.

Analysts expect MicroStrategy to accumulate even more Bitcoin as the market continues to decline.

Total
0
Shares
Previous Post

Coinbase Backed Crypto Trading Firm; Amber Group, Hits $1b Valuation After Fresh Funding

Next Post

Elon Musk’s Starlink: Global Internet Coverage By September

Related Posts