MicroStrategy’s Bitcoin Bet Doubles to $6 Billion as Price Soars
MicroStrategy’s Bitcoin Bet Doubles to $6 Billion as Price Soars
(Bloomberg) -- MicroStrategy Inc. appears to be one of the bigger beneficiaries from the euphoria surrounding the likely launch of Bitcoin ETFs, with the overall value of the company’s holding of the cryptocurrency doubling.
The enterprise software firm held approximately 114,042 Bitcoin as of Sept. 12, acquired at an aggregate purchase price of $3.16 billion and an average price of $27,713 per token, inclusive of fees and expenses. That investment is now valued at about $6.7 billion, with the price of the digital currency topping $60,000 Friday as it approached record highs.
Michael Saylor, the founder and chief executive of MicroStrategy began buying Bitcoin in August 2020, saying that it was better to hold the cryptocurrency on the company’s balance sheet rather than cash or low-yielding U.S. securities as most companies tend to do. While controversial, the strategy was later adopted by Tesla Inc. and Square Inc., helping to boost the price of Bitcoin to a record high in April before it turned lower again. Saylor celebrated the rebound Friday on Twitter.
The surge in Bitcoin has also helped to almost double the value of MicroStrategy’s stock this year, giving the company a market value of about $8.6 billion.
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