MicroStrategy Buys Another 271 BTC for $15 Million

Nasdaq-listed MicroStrategy bought 271 BTC for $15 million. The firm increased its digital gold reserves to 91,850 BTC.

May 14, 2021, | AtoZ Markets – MicroStrategy, the business intelligence firm that has made bitcoin (BTC) its main treasury reserve, said it purchased about 271 more of the leading cryptocurrency for $15 million in cash.

The average purchase price of the last batch of bitcoin was around $55,387 per coin.

In August 2020, MicroStrategy was the first public company to convert a portion of its equity capital of $250 million into the first cryptocurrency. Later, the firm's board of directors approved a policy of increasing investment in bitcoin at the expense of cash reserves.

In December, MicroStrategy used debt financing to buy cryptocurrency for the first time . The company placed $650 million in convertible bonds.

In February 2021, the software provider held a new issue of debt securities for more than $1 billion and again invested the funds raised in bitcoin.

In March, the firm continued to transfer free funds into the first cryptocurrency, investing first $15 million , then $10 million, then again $15 million. MicroStrategy bought bitcoins for the same last amount in April, and the company promised to continue investing.

The firm's cryptocurrency is worth over $4.57 billion at the time of writing, with an average purchase price of $24,403 per bitcoin.

According to Bitcoin Treasuries, the share of digital asset reserves in the company's market capitalization is 93%. The software provider's stock quotes have already shown a correlation with the bitcoin price.

As AtoZ Markets reported, the UK's largest bank HSBC banned customers from purchasing MicroStrategy securities through its online platform. The institution explained the decision by a change in policy regarding "virtual currencies like Bitcoin and Ethereum and other digital assets."

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