Business intelligence firm MicroStrategy has acquired another $190.5 million (4,167 Bitcoins) worth of Bitcoin over the period between Feb. 15 and April 4, according to an April 5 regulatory filing.
The Tysons, a Virginia-based company, shelled out $45,714 per coin on average. MicroStrategy's average purchase price currently stands at $30,700, including fees and expenses.
As reported by U.Today, MicroStrategy announced its previous Bitcoin purchase of $25 million in early February.
The Michael Saylor-helmed company has spent nearly $4 billion on purchasing Bitcoin since adopting the flagship cryptocurrency as its primary treasury reserve asset in April 2020.
Alex DovbnyaThe world's largest cryptocurrency is currently trading slightly in the green, sitting at the $46,700 level on major spot exchanges. Bitcoin, however, is still 32.69% away from its record peak despite the recent comeback.
No Bitcoin-denominated bonds
The most recent purchase comes after MicroStrategy took out a $205 million loan through MacroStrategy, its recently formed subsidiary, in order to buy more Bitcoin. It secured the loan via crypto-focused Silvergate Bank.
The company did not go as far as issuing Bitcoin-denominated bonds in order to finance its massive purchases. Saylor recently told Bloomberg that the cryptocurrency market was not mature enough for such a product. Hence, he opted for an old-fashioned loan from a bank in lieu of more exotic options.
Shares of MicroStrategy are up 1.74% in pre-market trading. The stock is still down 10% on a year-to-date basis, slightly underperforming Bitcoin.
Because of its massive exposure, the company has effectively turned into a cryptocurrency play. Its stock continues to trade in tandem with Bitcoin.
Vladislav Sopov
Tomiwabold Olajide
Dan Burgin