MicroStrategy bought $420M more bitcoin in Q3

MicroStrategy Inc. purchased nearly 9,000 additional bitcoins in the third quarter for almost $420 million, according to a quarterly report the Tysons-based business software company filed with the U.S. Securities and Exchange Commission on Oct. 28.

As of Sept. 30, MicroStrategy’s holds a total of 114,042 bitcoins, valued at $7.5 billion based on a price of $65,875.50 per bitcoin as of 3 p.m. on Nov. 8. The company’s average purchase price per bitcoin this fiscal year is $27,713.

MicroStrategy reported $754 million in cumulative impairment losses, about $65 million of which was seen during the third quarter, but bitcoin has seen a recent resurgence after its price plummeted $35,750 in April. Around 5 a.m. Nov. 8, bitcoin climbed 7% in 24 hours to $66,250 per unit, approaching a $66,900 record high that was set in late October, CNBC reported.

“MicroStrategy delivered strong third quarter results that demonstrated successful execution on both our operational and digital asset strategies,” MicroStrategy CEO Michael Saylor said in a statement. “Today, MicroStrategy is the world’s largest publicly traded corporate owner of bitcoin, with over 114,000 bitcoins. We will continue to evaluate opportunities to raise additional capital to execute on our bitcoin strategy.”

In the third quarter, MicroStrategy raised $399.5 million in net proceeds from the sale of 555,000 shares of class A common stock through its open market sale agreement with Jefferies Group LLC. As of Sept. 30, MicroStrategy had about $596 million in shares available for sale.

MicroStrategy announced its first bitcoin purchase in August 2020, saying it had converted $250 million from its cash holdings to more than 21,000 bitcoins, making it one of the first public companies to convert its cash treasury reserves into cryptocurrency as a store of value.

MicroStrategy employs 2,057 people, 787 of whom are in the U.S., and offers cloud-based business data analytics software.