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MicroStrategy said on Wednesday it had purchased just over $ 1 billion in additional bitcoin, just days after finalizing another convertible debt sale.
The Virginia-based enterprise software company said it paid an average price of $ 52,765 per bitcoin, including fees and other expenses. Its acquisition of around 19,452 bitcoins brings MicroStrategy’s total holdings in the digital token to 90,531.
MicroStrategy revealed its first bitcoin purchase in August, using existing cash on its balance sheet to acquire the cryptocurrency. He has since made two convertible debt offers to raise capital to finance additional purchases. The most recent offering was made last week, generating approximately $ 1.03 billion in net proceeds; the Notes bear a coupon rate of 0%.
News of the MicroStrategy purchase comes as the price of bitcoin jumped more than $ 50,000 on Wednesday, although it then fell below that level. The upward move follows news Tuesday night from Square, which said it bought $ 170 million worth of cryptocurrency.
MicroStrategy said on Wednesday that the average purchase price of all of its bitcoin purchases was $ 23,985 per digital token. He cumulatively spent $ 2.171 billion on bitcoin. Based on the price of bitcoin on Wednesday morning, the company’s holdings were worth nearly $ 4.5 billion.
MicroStrategy’s shares were more than 7% higher in pre-market trading. The company’s shares fell more than 20% on Tuesday as the price of bitcoin slipped.
Even so, MicroStrategy’s stock has been in tears since announcing its initial purchase of bitcoin in August, rising more than 400%, as some investors rushed to stocks to gain exposure to the cryptocurrency. .
Michael Saylor, CEO of MicroStrategy, has emerged as a top bitcoin advocate in recent months, calling on other companies to buy the digital token as an investment. On Tuesday, he told CNBC that he believed bitcoin would one day have a market value of $ 100 trillion. Bitcoin has a total market cap of around $ 920.85 billion on Wednesday, according to Coindesk.
Watch CNBC’s full interview with Saylor on Tuesday below.
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