On Monday (December 21), Nasdaq-listed business intelligence software company MicroStrategy Inc. (NASDAQ: MSTR) revealed that it had invested another $650 million in Bitcoin.
On August 11, MicroStrategy announced via a press release that it had “purchased 21,454 bitcoins at an aggregate purchase price of $250 million” to use as a “primary treasury reserve asset.”
Michael J. Saylor, Co-Founder, Chairman, and Chief Executive Officer of MicroStrategy, said at the time:
“Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ? risks that should be addressed proactively.”
Then, on September 14, MicroStrategy disclosed by filing a “Form 8-K“ that it had adopted a new Treasury Reserve Policy, as the result of which its Bitcoin holdings “may increase beyond the $250 million investment that the Company disclosed on August 11, 2020.”
The next day, Saylor provided an update on his company’s investment in Bitcoin:
On September 14, 2020, MicroStrategy completed its acquisition of 16,796 additional bitcoins at an aggregate purchase price of $175 million. To date, we have purchased a total of 38,250 bitcoins at an aggregate purchase price of $425 million, inclusive of fees and expenses.
— Michael Saylor (@michael_saylor) September 15, 2020
On December 4, Saylor disclosed that MicroStrategy has invested more of its cash in Bitcoin, this time buying 2,574 bitcoins at a cost of roughly $19,427 per bitcoin.
MicroStrategy has purchased approximately 2,574 bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $19,427 per bitcoin. We now hold approximately 40,824 bitcoins.https://t.co/nwZcM9zAXZ
— Michael Saylor (@michael_saylor) December 4, 2020
Then, on December 11, MicroStrategy issued a press release to announce “the closing of its previously announced offering of 0.750% convertible senior notes due 2025”, and went on to say that “the aggregate principal amount of the notes sold in the offering was $650 million.”
Well, it appears that MicroStrategy used all of this $650 million to buy more bitcoins:
MicroStrategy has purchased an additional 29,646 bitcoins for $650 million at an average price of $21,925 per #bitcoin and now #hodl an aggregate of 70,470 bitcoins purchased for $1.125 billion at an average price of $15,964 per bitcoin.https://t.co/j6wVLXIzoa
— Michael Saylor (@michael_saylor) December 21, 2020
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
