MicroStrategy purchased more bitcoins for $450 million. How many coins does it now have?

The company MicroStrategy has bought more bitcoins worth half a billion dollars. Under the leadership of Michael Saylor, the company used a bond issuance to raise funds for acquiring cryptocurrency.

MicroStrategy has acquired bitcoins for $458 million. The company announced the purchase of an additional 7,420 bitcoins at an average price of $61,750.

Former CEO of MicroStrategy and now chairman of its board, Michael Saylor, is considered one of the well-known bitcoin enthusiasts. Under his guidance, the company began accumulating cryptocurrency over three years ago.

The software maker, whose strategy involves buying bitcoin, acquired the new batch of cryptocurrency between September 13 and 15, Bloomberg reports. The funds for purchasing the assets were raised through a bond issuance.

A distinctive feature of MicroStrategy’s bitcoin accumulation strategy is the use of borrowed funds to buy coins. The company periodically issues debt securities with maturities of several years to increase its bitcoin holdings.

On September 16, Michael Saylor's company announced a new fundraising round of $700 million with a maturity until 2028, and now increased that amount to $1.01 billion.

On September 13, MicroStrategy announced the purchase of 18,300 bitcoins for $1.1 billion. The funds for buying these coins were obtained from selling shares to several financial institutions in early August. According to a report to the SEC, the company raised about $1.11 billion from the stock sale.

The company's balance sheet now holds 252,220 BTC, for which it has spent approximately $9.9 billion at an average purchase price of $39,266 per bitcoin. This makes MicroStrategy the largest publicly traded corporate holder of cryptocurrency.

Until spring 2023, the company's bitcoin holdings were unprofitable. However, amid rising cryptocurrency prices over the past nine months, the profitability of this asset for MicroStrategy has grown to 17.8% since the beginning of the year.

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As of 5:30 PM, the price of bitcoin is around $63,300. At this rate, the company founded by Michael Saylor owns bitcoins worth nearly $16 billion.