Business Intelligence firm MicroStrategy has bought 19,452 Bitcoin valued at over $1 billion in its latest acquisition of BTC.
The firm’s CEO Michael Saylor revealed the firm’s latest Bitcoin investment on Twitter on February 24, stating that MicroStrategy has bought 19452 BTC worth around $1.026 billion in cash. MicroStrategy’s treasury now holds over $3bln worth of Bitcoin after adopting the cryptocurrency as its primary treasury reserve in August 2020.
Saylor confirmed that MicroStrategy now holds around 90,531 Bitcoin in its reserves, giving each 1 BTC an average price of around $23,985. The CEO also added in a statement that MicroStrategy would continue to use excess cash made through its main business arm to buy more Bitcoin:
“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. We will continue to pursue our strategy of acquiring bitcoin with excess cash and we may from time to time, subject to market conditions, issue debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase additional bitcoin.”
MicroStrategy’s 90,531 BTC were purchased for around $2.1 bln in total, and that value has almost doubled given Bitcoin’s continued bull run in 2021.
Debt offering powers latest Bitcoin buy
Just last week, Saylor announced that MicroStrategy had wrapped up a $1.05 bln debt offering that would be used to finance the firm’s next BTC acquisition. This followed a similar move in December 2020, where the firm raised $650 million through a senior note offering which was used to acquire more BTC in January 2021.
Senior notes are essentially bonds that hold first priority over other debts should a company declare bankruptcy and face liquidation.