MicroStrategy bolsters its Bitcoin holdings by buying 5,050 more coins
MicroStrategy, a business intelligence firm, has increased its Bitcoin (BTC) holdings after purchasing 5,050 BTC worth $242.9 million. The company’s CEO, Michael Saylor, unveiled this news through a tweet on September 13, noting MicroStrategy bought the coins at an average price of approximately $48,099. Reportedly, this purchase brought the firm’s BTC holdings to 114,042.
According to a filing with the US Securities Exchange Commission (SEC), the company obtained the funds to purchase the funds from the sale of its class A common stock, MSTR. The publication further noted that MicroStrategy issued and sold approximately 555,179 shares under its sale agreement with Jefferies LLC. Each share fetched an average price of $727.64, netting the company roughly $399.9 million, excluding sales commissions and expenses.
MicroStrategy also detailed that this recent purchase has seen it buy a total of 8,957 BTC for approximately $419 million in Q3 2021.
A long-term approach to investing in BTC
This news comes as Saylor continues defending MicroStrategy’s decision to dabble in Bitcoin (BTC). In a recent interview, he said he sees nothing wrong with investing in BTC. According to him, investing in the leading cryptocurrency is similar to investing early in tech giants like Google, Facebook, and Amazon.
He further noted that taking debt to purchase more BTC is a brilliant strategy, saying,
I mean, if I could borrow $1 billion and buy Facebook a decade ago for 1% interest, I think I would’ve done quite well.
Bullish that BTC will continue performing well, Saylor said the company’s investment strategy is long-term, leveraged, and intelligent. He added that it is only a matter of time before billions of people plug their mobile phones into BTC. As such, the company’s purchases seek to solidify its position, seeing as the future of big tech is digital property.
Meanwhile, the BTC market is struggling to recover losses after surging as high as $52,853.76 before slipping back to the $40,000 level in the past week. At the time of writing, the coin is changing hands at $45,968.38 after gaining 3.00% over the past 24 hours.