MicroStrategy Is Now Up Over $1 Billion on Its Bitcoin Purchases
MicroStrategy has been one of the largest buyers of bitcoin in recent months.
The American business services company deployed $250 million into Bitcoin over August, then an additional $175 million in September. These two investments represented the first and second time a publicly-traded corporation had bought bitcoin for investment purposes.
MicroStrategy later doubled down, investing an additional $50 million and even going as far as to raise a $650 million private round of convertible senior notes, the proceeds of which it would potentially use to buy bitcoin.
By December 21st, the company had confirmed it had spent $1.125 billion to purchase 70,470 bitcoin, implying a cost basis of $15,964 per coin.
With the Bitcoin price currently above $33,600, the company is now more than $1 billion in the green on its investment.
The company's shares are reacting in kind.
During Monday's trading session, MSTR gained 9.5% per Yahoo Finance. MSTR now trades at $420, up from $125, which is where the shares traded on the day before MicroStrategy announced its first Bitcoin purchase.
With a large amount of debt and its balance sheet inextricably tied to Bitcoin, MicroStrategy's shares have been deemed one of the best ways for the public to obtain exposure to bitcoin.
As The BTC Times reported previously, stock research group Citron Research wrote in November that MSTR may be the "best way to own bitcoin" today.