Another Shockwave Expected As Microstrategy Buys $1B Of BTC

Another shockwave is expected on the market as Microstrategy purchased another $1 billion of BTC and added it to its balance sheet as per the announcement that we read today in our latest bitcoin news.

According to the announcement:

 “MicroStrategy Incorporated […] today announced that it had purchased an additional approximately 19,452 bitcoins for approximately $1.026 billion in cash at an average price of approximately $52,765 per bitcoin, inclusive of fees and expenses.”

As per the press release that will make another shockwave, the company now holds roughly about $4.57 billion which is 90,531 BTC at the current prices. The company bought its BTC cache for about $2.171 billion which means that the crypto investments resulted in a profit of $2.399 billion as Michael Saylor commented:

 “The Company remains focused on our two corporate strategies of growing our enterprise analytics software business and acquiring and holding bitcoin. 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.”

He added that the company will keep on acquiring BTC with excess cash and could from time to time issue debt for equity securities with the use of proceeds to purchase even more BTC. The company’s massive BTC investment started turning a lot of attention in 2020 as it paved the way for institutional adoption for cryptocurrency. A week ago, the company announced that it will issue $600 million worth of additional convertible notes for institutions and investors to purchase more BTC.

Previously we reported that it will make a $600 million investment in BTC with the notes being unsecured and will bear interest payable semi-annually in arrears on February 15 and August 15 every year, starting with this one. The notes will mature on February 15, 2027, unless they are repurchased earlier or converted in accordance with their terms.  The company intends to hold on to BTC until 2022.

It added that the company expects to grant to the initial purchasers of the notes as an option to buy within the 13-day period starting and including the date of which the notes are first issued up to another $90 million aggregate principal amount of the notes:

 “MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoins.”