MicroStrategy buys more Bitcoin for $1.026 billion

MicroStrategy announced that it had purchased an additional ~19,452 BTC for about $1.026 billion, including fees and expenses.

MicroStrategy has purchased an additional ~19,452 bitcoins for ~$1.026 billion in cash at an average price of ~$52,765 per #bitcoin. As of 2/24/2021, we #hodl ~90,531 bitcoins acquired for ~$2.171 billion at an average price of ~$23,985 per bitcoin. $MSTRhttps://t.co/FbsRYhXEhn

— Michael Saylor (@michael_saylor) February 24, 2021

The average purchase price was about $52,765 per coin.

On February 19, 2021, the company closed the previously announced round of senior convertible bonds worth $1.05 billion at a zero coupon and maturing in 2027. MicroStrategy expected net proceeds from the offering to be around $1.03 billion. All funds raised were planned to be invested in Bitcoin.

At that time MicroStrategy owned 71,079 BTC.

The business software analytics firm became the first publicly listed company to convert part of its idle cash into Bitcoin. In August MicroStrategy bought 21,454 BTC for about $250 million.

In September the company purchased another 16,796 BTC for $175 million. In December it added 2,574 BTC to its balance, costing $50 million.

In the same month, MicroStrategy raised $650 million of debt financing to invest in Bitcoin through an issue of senior convertible bonds. The amount turned out to be $100 million higher than the target for the offering.

“The company currently holds more than 90,000 BTC, which confirms our confidence that Bitcoin, as the most widely used cryptocurrency in the world, can serve as a reliable store of value. We will continue to adhere to our strategy of acquiring Bitcoin with excess cash,” said Michael Saylor, the company’s CEO.

He added that, depending on market conditions, the firm may continue to issue debt or equity securities to raise capital for purchasing additional Bitcoin.

Earlier, in January, Saylor said the company would explore new opportunities for investing in Bitcoin.

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