money Michael Saylor's MicroStrategy buys another 7,002 bitcoins for $414 million — keeping its promise to keep adding the crypto
MicroStrategy bought 7,002 bitcoins worth $414.1 million in the past two months, bringing its total holdings to 121,044.
It paid an average price of $59,187 per bitcoin — below a record high around $69,000, but above Monday's price.
The tech firm, headed by crypto bull Michael Saylor, has promised to keep adding to its bitcoin hoard.
Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
MicroStrategy, the analysis software maker led by crypto bull Michael Saylor, has snapped up more bitcoin as it holds to its promise to keep buying more of the leading digital currency.
The company bought 7,002 bitcoins at a cost of $414 million in its fourth quarter so far — between October 1 and November 29 — it said in a Securities and Exchange Commission filing Monday. That brings its total stockpile to 121,044 tokens.
It paid an average of $59,187 per bitcoin, during a period when the cryptocurrency rallied, then fell back. Bitcoin began surging in October, lifted by excitement around the SEC's approval of the first bitcoin futures ETFs. It hit a record high of $69,044 on November 10, but has retreated to trade at $56,959 on Monday, according to CoinGecko data.
Despite the cryptocurrency's price moves, MicroStrategy and its CEO Saylor have repeatedly vowed to keep building its bitcoin stockpile for years to come.
The company "will continue to acquire [bitcoin] quarter by quarter, time to time, either with cash flows or with debt or with equity, just depending upon market circumstances and what looks most accretive to our shareholders," Saylor told CNBC in an interview earlier this month.
MicroStrategy now owns a total of 121,044 bitcoins, picked up for an average price of $29,534 per token. At current prices, its holding is worth about $6.89 billion — but cost the company $3.57 billion to purchase, according to the filing.
In its most recent earnings report in September, MicroStrategy booked impairment losses of $754.7 million on its bitcoin holdings. That figure may well have changed given the cryptocurrency's subsequent rally.
MicroStrategy's stock was up 2.83% at $681.73 in Monday morning trading, and has risen about 75% this year so far.
Other companies have made big bets on bitcoin, though MicroStrategy is seen as a leader. Elon Musk's electric-car maker Tesla holds 42,902 bitcoins worth $2.45 billion, according to Bitcoin Treasuries. Jack Dorsey's digital payments company Square has 8,027 bitcoins valued at $459.5 million, while Mike Novogratz' group Galaxy Digital has 6,400 bitcoins priced at $938.8 million.
Read the original article on Business Insider
