MicroStrategy adds $15 million to Bitcoin holdings

Nasdaq-listed MicroStrategy purchased 271 BTC for $15 million. The firm increased its reserves in digital gold to 91,850 BTC.

MicroStrategy has purchased an additional 271 bitcoins for $15.0 million in cash at an average price of ~$55,387 per #bitcoin. As of 5/13/2021, we #hodl ~91,850 bitcoins acquired for ~$2.241 billion at an average price of ~24,403 per bitcoin. $MSTRhttps://t.co/EwZnRkAt6k

— Michael Saylor (@michael_saylor) May 13, 2021

The average price paid for the latest batch of bitcoins was about $55,387 per bitcoin.

In August 2020, MicroStrategy became the first public company to convert part of its own capital in the amount of $250 million into the first cryptocurrency. Later, the board of directors approved a policy to increase investments in bitcoin funded from cash reserves.

In December, MicroStrategy used debt financing for the first time to purchase cryptocurrency. The company issued convertible bonds for $650 million.

In February 2021, the software provider carried out a new issue of debt securities worth more than $1 billion and again invested the funds raised in bitcoin.

In March the firm continued to direct free cash into the leading cryptocurrency, first investing $15 million, then $10 million, and then another $15 million. For a similar amount, MicroStrategy bought bitcoins in April, and the company pledged to continue investing.

The value of the company’s cryptocurrency holdings at the time of writing is over $4.57 billion, with an average purchase price of $24,403 per bitcoin.

According to Bitcoin Treasuries, the share of reserves in the digital asset within the company’s market capitalization stands at 93%. The software vendor’s stock prices have already demonstrated a correlation with the price of bitcoin.

Earlier the UK’s largest bank HSBC banned clients from buying MicroStrategy shares via its online platform. The institution explained the move reflected a policy shift toward "virtual currencies like Bitcoin, Ethereum and other digital assets".

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