MicroStrategy Inc. has announced it had purchased almost 30,000 BTCs (EXANTE: Bitcoin) for $650 million in cash. The company claims it purchased the cryptocurrency at an average price of ~$21,925 per BTC.
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The largest business data analytics provider now has 70,470 BTCs ($1,6 billion), purchased at an average purchase price of $15,964 per BTC.
Working harder to earn a currency made weaker to invest in assets growing riskier is a road to serfdom. #Bitcoin is the path to prosperity.— Michael Saylor (@michael_saylor) December 20, 2020
MicroStrategy's Chief Executive Michael Saylor said in an official announcement that the acquisition reaffirms the company's belief that bitcoin "is a dependable store of value."
"We believe the proactive management of our balance sheet, combined with the improved revenue and profitability performance of the Company, have been significant factors in the recent appreciation in our stock price," Saylor added.
MicroStrategy President and CFO Phong Le says the company still believes bitcoin will provide the opportunity "for better returns and preserve the value of our capital over time compared to holding cash." Initially, MicroStrategy wanted to offer $400 million of convertible bonds to buy bitcoins.
However, after Citibank's analysts criticized MicroStrategy's plan — which led to the company's stock plummet — the business analytics provider decided to increase the amount of convertible bonds up to $650 million. As of press time, bitcoin is trading at $23 285.
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