MicroStrategy buys additional 5,050 bitcoins, now owns $5.25 billion in BTC

Virginia-based enterprise software company, MicroStrategy Inc, on Tuesday said that it has purchased additional 5,050 bitcoins for around $243 million in cash.

The average purchase price of its latest transaction is $48,099 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 September 12, MicroStrategy holds an aggregate of 114,042 bitcoins, which were acquired at a total cost of around $3.16 billion and an average purchase price of approximately $27,713 per unit.

At today’s prices, the pro-crypto company’s bitcoin holdings are worth more than $5.25 billion, underscoring CEO Michael Saylor’s growing conviction in the primary cryptocurrency.

For reference, MicroStrategy’s market cap stands at $6.26 billion as of Tuesday, meaning the company places nearly 83% of its net value in Bitcoin.

“As previously disclosed, on June 14, 2021, the Company entered into an Open Market Sale AgreementSM with Jefferies LLC pursuant to which the Company may issue and sell shares of its class A common stock, par value $0.001 per share (Shares), having an aggregate offering price of up to $1.0 billion from time to time through Jefferies,” the company informed regulators.

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.

The recent purchase comes shortly after the Nasdaq-listed business intelligence firm has posted a record loss for the second quarter as a previous crypto crash wiped out about $425 million in market value of its bitcoin reserves.

The listed corporation, spearheaded by one of bitcoin’s most vocal proponents, reported a loss of $300 million in Q2 2021, compared to a $3 million profit a year earlier.

The sluggish performance came less than two months after MicroStrategy raised $500 million in bonds to acquire more of bitcoin. The move signaled that institutional investors are still optimistic about the future of the world’s largest cryptocurrency as it pares back losses from a massive crash in May.

The business intelligence giant had previously sold debts worth more than $2.0 billion for the explicit purpose of purchasing Bitcoin.

The last time MicroStrategy announced a large bitcoin purchase was in August, when the American firm spent roughly $177 million to add 3,907 bitcoins to its strategic reserves.