MicroStrategy announced Wednesday that it has bought a little over $ 1 billion worth of bitcoin, just days after concluding another sale of convertible debt.
The Virginia-based enterprise software company said it paid an average price of $ 52,765 per bitcoin, including taxes and other costs. Getting around 19,452 bitcoins puts MicroStrategy’s total ownership of the digital token at 90,531.
MicroStrategy unveiled its first bitcoin purchase in August, using existing currency on its balance sheet to acquire the cryptocurrency. He has since completed two flexible debt offers to raise capital to fund additional purchases. The latest offer was finalized last week, generating approximately $ 1.03 billion in net cash; the notes have a 0% coupon rate.
The news of the purchase of MicroStrategy comes as the price of bitcoin bounced back above $ 50,000 on Wednesday, although it went down below that level. The higher move follows Tuesday night’s news from Square, which said it bought $ 170 million worth of cryptocurrency.
MicroStrategy said Wednesday that the average purchase price per bitcoin purchase is $ 23,985 per digital token. It has spent $ 2.171 billion on bitcoin. Based on Wednesday morning’s bitcoin price, the company’s holdings were worth nearly $ 4.5 billion.
Shares of MicroStrategy were up 6% early in Wednesday’s session. The company’s stock plummeted above 20% on Tuesday as the price of bitcoin plummeted.
Nonetheless, MicroStrategy stocks have been in tears since announcing their first bitcoin purchase in August, rising above 400%, while some investors came to the shares to find out about the cryptocurrency.
MicroStrategy CEO Michael Saylor has become a major candidate for bitcoin in recent months, urging other companies to buy the digital token as an investment. On Tuesday, he told CNBC he believes bitcoin will one day have a market value of $ 100 trillion. On Wednesday, bitcoin has a total market cap of about $ 920.85 billion, according to Coindesk.
Watch CNBC’s full interview with Saylor on Tuesday below.