Microstrategy plans to purchase more bitcoin

VIRGINIA: Microstrategy Inc, the enterprise software firm that has embraced bitcoin investing, said it paid an average US$52,765 for nearly 20,000 tokens last week after issuing Us$1.05bil in convertible bonds.

The company’s latest foray into the cryptocurrency market pushed its total holdings past 90,000 coins at a cost of Us$2.17bil, it said in a statement.

Microstrategy said it will continue buying bitcoin using “excess cash” and may issue more debt to finance the purchases.

Microstrategy has paid an average price of almost US$24,000 for its coins, giving it a gain of about 100%.

The company first announced bitcoin buys last summer, saying it used corporate cash reserves.

Microstrategy has since issued two rounds of convertible bonds to make additional purchases.