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MicroStrategy discloses new $50 million bitcoin buy

MicroStrategy discloses new $50 million bitcoin buy

The publicly traded business intelligence firm MicroStrategy has bought $50 million in Bitcoin.

CEO Michael Saylor disclosed the move in a late afternoon tweet on Friday.

“MicroStrategy has purchased approximately 2,574 bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $19,427 per bitcoin,” Saylor wrote in the tweet. “We now hold approximately 40,824 bitcoins.”

The move was perhaps expected, given that during its Q3 earnings call, the firm said that it would spend excess cash beyond its $50 million in day-to-day operating cash on bitcoin “subject to market conditions and business needs.”

Some back-of-the-napkin math indicates that, based on its previous purchases, MicroStrategy’s average cost per bitcoin is $11,635. All told, the total value of its bitcoin holdings is worth roughly $766.6 million.

Beyond just holding bitcoin, MicroStrategy is also looking at ways it might offer bitcoin data products and services as part of its wider business offering, as previously reported.

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Michael McSweeney

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