Business intelligence and analytics software firm MicroStrategy recently announced that it has purchased a new batch of Bitcoin, the alpha crypto.According to the company’s filing, the firm made a new purchase of an additional 7,002 Bitcoin ($BTC), which is currently worth some $414.4 million. The purchase was done with an average price of $59,187 per coin. The purchase was financed through a sale of the firm’s shares for its company stock (NASDAQ: MSTR) to raise the $414.4 million raised for the crypto purchase. MicroStrategy sold its shares for $732.16 per piece, with 571,001 shares sold.
MicroStrategy has purchased an additional 7,002 bitcoins for ~$414.4 million in cash at an average price of ~$59,187 per #bitcoin. As of 11/29/21 we #hodl ~121,044 bitcoins acquired for ~$3.57 billion at an average price of ~$29,534 per bitcoin. $MSTRhttps://t.co/OA8VWG1bZX
— Michael Saylor⚡️ (@saylor) November 29, 2021
This most recent purchase from MicroStrategy brings the firm’s crypto coffers to over $$6.93 billion, with 121,044 BTC on its balance sheet. In sum, the average price of its BTC purchase stands at $29,534 per coin, inclusive of capital appreciation from previous purchases.
As one of Bitcoin’s primary serial corporate investors, MicroStrategy has opted to ride the trend over the past weekend, with El Salvador also “buying the dip” in what has been deemed as crypto’s equivalent of a Black Friday deal as Bitcoin dipped below the $55k level.
An earnings conference transcript written by MicroStrategy CFO Phong Le and published earlier October details that the firm’s crypto holdings are currently classified as “indefinite-lived intangible assets under applicable accounting rules,” which meant that if the fair market value of Bitcoin goes below its book value, the firm is obliged to recognize impairment charges and record losses, which could then be used to offset its corporate income tax liability. It was in mid-2020 that MicroStrategy began making inroads into Bitcoin investment, with its CEO, Michael Saylor, saying that the alpha cryptocurrency was a “dependable store of value” that showed long-term return potential. MicroStrategy’s crypto purchases and stock sales this year have been covered by CryptoDaily, and the coverage reveals that the firm has been consistently investing in Bitcoin at least every quarter.
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