Posted 2 weeks ago | Catoshi Nakamoto
Microstrategy is continuing to buy more Bitcoin as the price of the cryptocurrency crosses the $50,000 level.
In a press release on Tuesday, the software intelligence technology company stated it plans to raise an additional $600 million from convertible senior notes, to buy more Bitcoin.
MicroStrategy was the first corporation to directly purchase Bitcoin, as its CEO, Michael Saylor, announced the companies hedge against the ongoing devaluation of the U.S. dollar. Since the company’s first purchase of Bitcoin in August, MicroStrategy now owns 71,079 Bitcoin, worth more than $3.5 billion.
Following Microstrategy’s move into Bitcoin both Square, and Tesla have announced they are buying Bitcoin as a Treasury Reserve asset.
Tesla recently acquired $1.5 billion in Bitcoin in January and said it plans to begin accepting the cryptocurrency as a form of payment for its products.
This isn’t the first time MicroStrategy has raised money for the sole purpose of buying more bitcoin. In December, the firm raised $400 million to add to its Bitcoin holdings.
MicroStrategy has paid an average of $16,109 per bitcoin, and the move has paid off big. Shares of MicroStrategy have soared 736% since Microstrategy’s stock became a de-facto Bitcoin ETF with its first purchase in August of last year. The company’s market valuation has exploded from less than $2 billion in August to more than $10 billion at the time of this report.
Saylor recently hosted a Bitcoin conference where “thousands of executives, officers and directors and advisors of corporations,” attended according to Saylor. As a side note prior to the historic conference, Microstrategy announced another purchase of Bitcoin. Around that time, the firm bought an additional $10 million dollars worth of the number one cryptocurrency. The company is now seeking to purchase an additional $600 million BTC, solidifying itself as one of the largest holders of Bitcoin next to Grayscale.
Speaking of Grayscale, Michael Sonnenshein the CEO of Grayscale responded to the recent Microstrategy filing expressing that Saylor was, “trying to catch up with Grayscale?” Grayscale Bitcoin Trust holds a massive 649,130 BTC worth $31 billion today. If Microstrategy is really trying to catch up to Grayscale, they have a long way to go.
Bitcoin is currently trading at [FIAT: $48,404.07] DOWN -0.4% in the last 24 hours according to Coingecko at the time of this report.