MicroStrategy Splurges Another $650M in Latest Bitcoin Investment

microstrategy_flickr
21 December 2020

MicroStrategy has invested all of the proceeds of its $650 million debt issuance into 29,646 more bitcoin.

  • CEO Michael Saylor announced in a tweet Monday that the latest purchase was made at an average price of $21,925 per bitcoin.
  • The business intelligence firm now has 70,470 BTC worth over $1.596 billion in its treasury reserve.
  • Saylor said in the tweet that MicroStrategy has spent $1.125 billion on bitcoin to date, at an average price of $15,964 per bitcoin.
  • MicroStrategy held a $650 million convertible senior note sale in early December to raise funds for this allocation. Previous purchases relied on a $500 million glut in its corporate balance sheet.
  • Issuing debt to buy bitcoin is a bold bet for any publicly-traded company, especially for one whose business model does not even center on cryptocurrencies. CEO Michael Saylor has brushed aside all criticism nonetheless.

Read more: Michael Saylor: Bitcoin’s Cyber Hornet

Disclosure
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.