MicroStrategy subsidiary adds another 4,197 BTC to balance sheet

MicroStrategy subsidiary adds another 4,197 BTC to balance sheet

On Tuesday, enterprise software development company MicroStrategy announced through a filing with the United States Securities and Exchange Commission (SEC) that its subsidiary MacroStrategy acquired 4,197 Bitcoin ($190.5 million) between February 15 and 4. of April.

The coins were purchased at a weighted average price of $45,714, which is roughly equal to the price of the digital asset at press time. As a result, MicroStrategy and its affiliates now hold a total of 129,218 BTC, with a total aggregate purchase price of $3.97 billion and an average purchase price of $30,700 per BTC.

The week before, MacroStrategy closed a $205 million BTC collateralized loan from leading fintech bank and crypto gateway Silvergate. The company said it would use the loan to buy more BTC, while its own BTC deposits serve as collateral for the loan, effectively making it a sophisticated leveraged operation.

Microstrategy has been investing in BTC since August 2020, almost constantly buying the digital asset every quarter.

But recently, the SEC took a swipe at his Bitcoin accounting practices, sending his stock plummeting that day. The firm had been using methods to, in part, nullify the effects of cryptocurrency market volatility. MicroStrategy founder, chairman and CEO Michael Saylor has been a lifelong supporter of Bitcoin, citing the potential of digital assets as an “inflation hedge” as part of his investment thesis.

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Although last Friday, despite his bullish outlook, Saylor said that financial markets are not ready for Bitcoin bonds and that El Salvador’s Volcano Bond was even riskier than his firm’s collateralized BTC loan.

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