MicroStrategy purchases $414.4 million worth of Bitcoin, with total BTC balance eclipsing $3.5 billion

MicroStrategy CEO Michael Saylor announced Monday via Twitter and company filing that the company purchased 7,002 bitcoins (BTC) at an average price $59,187. This is approximately $414.4million. MicroStrategy raised $414.4 million cash by selling 571,001 shares company stock between Oct. 1, and Nov. 29, at $732.16 each.

MicroStrategy purchased 7,002 additional bitcoins at a price of $59.187 per #bitcoin. We #hodl 121 044 bitcoins purchased for $3.57 Billion at an average price $29 534 per bitcoin as of 11/29/21. $MSTRhttps://t.co/OA8VWG1bZX
— Michael Saylor (@saylor), November 29, 2021

The company now has 121,044 BTC worth up to $3.57 Billion as of Monday. It was purchased at an average cost of $29,534 per coin. Capital appreciation was also included.

MicroStrategy announced in August 2020 that it would adopt Bitcoin to its Treasury Reserve Asset. The firm cited the digital currency as a “dependable store-of-value” and an attractive investment with a greater long term return potential than cash. The firm also pointed out the unprecedented stimulus that governments are using to fight COVID-19, which could be a catalyst for inflation and depreciation in fiat currencies. MicroStrategy almost always purchases Bitcoin in every quarter since then.

Everyday investors usually lose when Bitcoin’s price drops and gain when it appreciates. MicroStrategy is not affected by this. According to the earnings conference transcript, Phong Le (President and Chief Financial Officer of MicroStrategy) stated that Bitcoin holdings were classified as “indefinitely-lived intangible asset under applicable accounting rules.” If the fair or market value of the Bitcoin falls below its book value, then the company will have to recognize impairment costs. These impairment charges can be used to offset the company’s corporate income tax liability.

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Jason Basler– Financial Updates My Name is Jason Basler and I am also the main source from the ‘Topnewsscoop.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor. Address: 4830 Crim Lane Dayton, OH 45402, United States of America Phone Number:  +1 937 727 7917 Email: [email protected]

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