Virginia-based enterprise software company, MicroStrategy Inc, on Monday said that it has purchased additional 7,002 bitcoins for around $414.1 million in cash.
The average purchase price of its latest transactions – between October 1 and November 29 – is $59,187 apiece, including fees and other expenses. It was financed with the proceeds generated from a sale of MicroStrategy’s class A common stock, the company revealed in its latest filing with the U.S. Securities and Exchange Commission (SEC).
As of November 30, MicroStrategy holds an aggregate of 121,044 bitcoins, which were acquired at a total cost of around $3.57 billion and an average purchase price of approximately $29,534 per unit.
At today’s prices, the pro-crypto company’s bitcoin holdings are worth more than $6.89 billion, underscoring CEO Michael Saylor’s growing conviction in the primary cryptocurrency.
For reference, MicroStrategy’s market cap stands at $7.2 billion as of Monday, meaning the company places nearly 95% of its net value in Bitcoin.
The recent purchase comes shortly after the Nasdaq-listed business intelligence firm has posted a cumulative impairment loss of $754.7 million on its cryptocurrency holdings.
The world’s biggest corporate holder of bitcoin witnessed paper losses from holding digital assets on its books. However, this loss is something that has not yet been realized as it just reflects a depreciation in fair market value in excess of the book value.
In a sign of massive interest from investors, Microstrategy CEO said his company is doubling down on its cryptocurrency bet and will continue to acquire additional bitcoins. Going forward, Michael Saylor said the firm intends to continue to deploy additional capital into their digital asset strategy, noting the firm purchased nearly 9,000 bitcoins (worth roughly $560 million) in the third quarter.
The latest crypto purchase was made in September for around $243 million in cash at an average price of $48,099 apiece.
MicroStrategy has good reason to do that again. The publicly-listed company’s share price shot up as its Bitcoin bet had turned into a profitable one. The price of Bitcoin rose from $11,000 in August 2020, when it made its first crypto purchase via Coinbase’s institutional service, to more than $69,000 earlier this month.
MicroStrategy CEO Saylor was said to be the one who convinced Elon Musk to move $1.5 billion dollars of Tesla’s funds into bitcoin.