MicroStrategy announced Wednesday that it bought just over $1 billion worth of additional bitcoin, just days after finalizing another sale of convertible debt. The purchase of 19,452 bitcoins puts the company’s total holdings of the leading cryptocurrency at 90,531. The Virginia-based enterprise software company said it paid an average price of $52,765 per bitcoin, including fees and other expenses, as reported by CNBC. The firm revealed its first bitcoin purchase back in August, using existing cash on its balance sheet to acquire the cryptocurrency.
MicroStrategy has completed two convertible debt offerings.
Since its first bitcoin purchase, MicroStrategy has completed two convertible debt offerings to raise capital to finance additional purchases. The most recent offering was completed last week, generating roughly $1.03 billion in net proceeds; the notes bear a 0% coupon rate. The news of MicroStrategy’s purchase comes as the price of bitcoin surged back over $50,000 Wednesday, although it later dipped below that level. At the time of writing, BTC is changing hands at just below $50,500. MicroStrategy has spent $2.171 billion on bitcoin. Based on the current price of bitcoin, the firm’s holdings were worth nearly $4.5 billion.
Payment firm Square buys $170 million worth of BTC.
As reported earlier, Twitter CEO Jack Dorsey-led credit and payments firm Square has invested $170 million in Bitcoin, more than tripling its last investment in the leading cryptocurrency. The company purchased about 3,318 bitcoins at an average price of $51,236, the payment firm disclosed in its quarterly earnings report on Tuesday. “Combined with Square’s previous investment of $50 million in bitcoin, this represents approximately five percent of Square’s total cash, cash equivalents, and marketable securities as of December 31, 2020,” the payment firm announced. Bitcoin has been witnessing a massive winning rally mainly due to the increased institutional interest in cryptocurrency.