MicroStrategy adds 4,197 BTC to the balance sheet

The business intelligence firm now owns a total of 129218 Bitcoin

MicroStrategy adds 4,197 BTC to the balance sheet
MicroStrategy adds 4,197 BTC to the balance sheet

In a statement with the US Securities and Exchange Commission (SEC) on Tuesday, enterprise software provider MicroStrategy reported that its subsidiary MicroStrategy bought 4,197 Bitcoin (BTC) ($190.5 million) between February 15 and Tuesday.

The coins were acquired at a weighted average price of $45,714, which is nearly the same as the current price of the digital asset. As a consequence, MicroStrategy and its subsidiaries currently hold a total of 129218 bitcoins worth $3.97 billion, with an average purchase price of $30,700 per bitcoin.

MacroStrategy had closed a $205 million secured loan in bitcoin from Silvergate, a major fintech and cryptocurrency bank, the previous week. The loan will be used to purchase more bitcoin, and the company’s bitcoin deposits will serve as security for the borrowing, thereby transforming it into a complicated leveraged transaction.

Since August 2020, MicroStrategy has been investing in Bitcoin, purchasing the digital currency practically every quarter on a continuous manner.

However, the Securities and Exchange Commission recently rejected its accounting techniques for Bitcoin, causing its stock to fall that day. The firm has been using measures to mitigate the consequences of the bitcoin market’s volatility. Michael Saylor, Chairman and CEO of Microstrategy, has been a vocal supporter of Bitcoin, claiming the digital asset’s potential as a “inflation hedge” as part of his investing thesis.

Despite his optimistic prognosis last Friday, Saylor stated that financial markets are not ready for Bitcoin bonds and that El Salvador’s Volcano Bond was riskier than his company’s Bitcoin backed loan.

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