Digital Assets: Perma-Bull Michael Saylor-Led MicroStrategy Adds $177M To Bitcoin Bet
MicroStrategy snapped up 3,097 bitcoins at an average price of about $45,294 per coin.
MicroStrategy (NASDAQ: MSTR), the business data company that pioneered parking corporate treasury reserves in bitcoin, has added another tranche of the cryptocurrency to its already massive hoard, according to a filing today (August 24, 2021). (CryptoNews)
The company said it had purchased approximately 3,907 bitcoins for around $177.0 million in cash, at an average price of about $45,294 per bitcoin, inclusive of fees and expenses, during the period July 1, 2021, to August 23, 2021.
The company’s current holding is therefore approximately 108,992 bitcoins that were acquired at an aggregate purchase price of $2.918 billion and an average purchase price of approximately $26,769 per bitcoin, inclusive of fees and expenses, it revealed in the filing.
The latest purchases were funded by sale of an aggregate of 238,053 shares (under an ATM facility with Jeffries LLC), at an average gross price per share of approximately $753.21, for aggregate net proceeds to the Company (less sales commissions and expenses) of approximately $177.5 million.
Perma-bull Michael Saylor
Michael Saylor, CEO of MicroStrategy, said in a July interview that buying bitcoin with borrowed money was like investing in the today’s tech goliaths when they were in their infancy.
“If you borrow billions of dollars at 1% interest and invest it in the next Big Tech digital network that you thought was going to be the dominant Amazon (NASDAQ: AMZN) or Google (NASDAQ: GOOGL) or Facebook (NASDAQ: FB) of money, why wouldn’t you?” MicroStrategy’s Michael Saylor said, according to CNBC. “I mean, if I could borrow $1 billion and buy Facebook a decade ago for 1% interest, I think I would’ve done quite well.”
At the time of writing, bitcoin is trading at $48,477.73 according to CoinDesk, and seemingly unable to breach the massive psychological resistance positioned around $50,000.
Related Story: MicroStrategy To Scale Up Its Bitcoin Bet By $400M
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