MicroStrategy buys over $1bn worth of bitcoin

MicroStrategy announced on Wednesday the purchase of just over $1bn worth of additional bitcoin.

The Virginia-based enterprise software company said it paid an average price of $52,765 per bitcoin, including fees and other expenses, which amounts to around 19,452 bitcoins.

Based on the price of bitcoin on Wednesday morning, the firm’s holdings were worth nearly $4.5bn, having spent $2.171bn on purchasing 90,531 bitcoin.

MicroStrategy revealed its first bitcoin purchase in August and according to CNBC, it had since completed two convertible debt offerings to raise capital to finance additional purchases.

The most recent offering was completed during just the previous week, generating roughly $1.03bn in net proceeds.

MicroStrategy boss, Michael Saylor, who is also one of the leading advocates for bitcoin, also called on other companies to buy the digital token as an investment.

As of 1602 GMT, the price of bitcoin was jumping by 3.6% to $50,090 Wednesday.