MicroStrategy Announces New $190.5 Million Bitcoin Investment

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MicroStrategy
MicroStrategy

For the first time, MicroStrategy Inc. borrowed $190.5 million against its Bitcoin holdings to make the purchase.

The software firm led by Bitcoin supporter and CEO Michael Saylor now owns approximately 129,218 digital tokens worth approximately $6 billion dollars. Saylor, Michael The Tysons Corner, Virginia-based company purchased 4,167.

Bitcoins between February 15 and April 4 during its most recent buying spree. The value of one bitcoin fell by less than 1% to $46,004.

MicroStrategy Increases Its Bitcoin Holdings With A New $190.5 Million Investment

MicroStrategy, a business intelligence firm, is increasing its Bitcoin investment. MicroStrategy, one of its subsidiaries, has announced the purchase of 4,167 BTC for approximately $190.5 million.

MicroStrategy recently announced that it had obtained a $205 million loan secured by Bitcoin from Silvergate Bank. The company stated at the time that it intended to use the loan for both Bitcoin purchases and other corporate purposes.

MicroStrategy’s purchases of bitcoin between February 15 and April 4 were disclosed in an SEC filing. MicroStrategy and its subsidiaries now own 129,218 BTC, which is worth $6.01 billion at today’s prices.

The company’s holdings account for approximately 0.68 percent of the total Bitcoin supply.

One bitcoin is currently worth approximately $47,450 USD. MicroStrategy profited 51.3 percent on its Bitcoin investment at an average price of $30,700 per Bitcoin.

MicroStrategy became the first company to buy when it announced a $250 million purchase in August 2020. Michael Saylor, the company’s CEO, has become an enthusiastic supporter of Bitcoin on social media and in media appearances.

According To The Bitcoin Treasuries Website

MicroStrategy has the most among publicly traded companies. In comparison to Tesla, which is second, it has nearly three times the amount of Bitcoin as the leader.

Marathon Digital Holdings, Block (formerly Square), and Bitfarms Limited round out the top five holding companies.

Bitcoin is currently up 19.2 percent against the US dollar in the last 30 days. In the short term, the market has recently slowed, with BTC down 2.8 percent in the last seven days, according to CoinMarketCap.

When MicroStrategy made the decision to purchase, it first sold convertible bonds that it had issued.

MicroStrategy’s stock fell about 4.3 percent on Tuesday. Since the company began purchasing Bitcoins at a discount, the stock’s value has increased by approximately $5.7 billion.

Read More: Goldman Sachs In Plans To Launch Its OTC Ethereum Options Trading

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