Digital Assets: Corporates Buy More Bitcoin – MicroStrategy $1B; Square $170M
MicroStrategy describes bitcoin as “a dependable store of value.”
In an announcement today, MicroStrategy (NASDAQ: MSTR) said it had invested an additional $1.026 billion in the purchase of 19,452 bitcoins at an average price of $52,765 per bitcoin. The company said it now held 90,531 bitcoin at an average cost of $23,985 per bitcoin. The holding is therefore worth about $2.17 billion in total. (CNBC)
Michael Saylor calls bitcoin a store of value
“The Company remains focused on our two corporate strategies of growing our enterprise analytics software business and acquiring and holding bitcoin,” said Michael J. Saylor, CEO, MicroStrategy Incorporated, in a statement.
“The company now holds over 90,000 bitcoins. Reaffirming our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, can serve as a dependable store of value.”
“We will continue to pursue our strategy of acquiring bitcoin with excess cash and we may from time to time, subject to market conditions, issue debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase additional bitcoin.”
The company has, on two occasions, funded its investments in bitcoin by raising debt.
Earlier this month it closed its offering of 0% convertible senior notes, due 2027, of an aggregate principal amount of $1.05 billion. The avowed purpose was to buy additional bitcoin.
In December, the company raised $650 million by selling convertible senior notes. These are due in 2025 with interest payable semi-annually at 0.75% APY.
Square adds to bitcoin holdings
Square (NYSE: SQ) said Tuesday that it had spent $170 million to buy 3,318 bitcoin, according to CNBC.
“The investment is part of Square’s ongoing commitment to bitcoin, and the company plans to assess its aggregate investment in bitcoin relative to its other investments on an ongoing basis,” the company said.
The investment represented about 5% of the company’s total assets as at end of 2020.
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