Tuesday, August 16, 2022

MicroStrategy buys an additional 7,002 bitcoins for around $414.4 million in cash.

The Takeaway:

Business intelligence firm MicroStrategy announced that it had bought an additional 7,002 bitcoins for around $414.4 million in cash.

On Monday, Business intelligence firm MicroStrategy announced that it had bought an additional 7,002 bitcoins for around $414.4 million in cash. The software company¬†bought these bitcoins at an average purchase price of $59,187 per coin. It purchased these bitcoins as part of its fourth-quarter purchase. Bitcoin’s price gained back momentum today as it rose as much as $58,000. Other altcoins also saw a spike.

 

MicroStrategy now holds a total of 121,044 bitcoins.

MicroStrategy now holds a total of 121,044 bitcoins, worth nearly $7 billion at current prices. The company is currently sitting at a huge paper profit of around $3 billion. It bought these bitcoins at an aggregate purchase price of $3.57 billion with an average purchase price of approximately $29,534 per bitcoin. Bitcoin is currently trading at around $57,280. If the price of bitcoin were to fall, MicroStrategy could struggle to pay its over $2 billion debt that it has taken on to purchase its bitcoins.

 

MicroStrategy reported $128 million worth of total revenue for the 3rd quarter.

MicroStrategy provides business intelligence software, mobile app software, and cloud-based solutions, and the firm pulls in revenue via streams such as product licensing and subscription services. The firm reported $128 million worth of total revenue for the previous quarter, beating the Zacks Consensus Estimate by 0.39% and marking a 0.5% increase compared to MicroStrategy’s Q3 results from 2020. The tech firm had added almost 9,000 Bitcoin to its holdings in Q3. While the company’s revenue squeaked past estimates, the firm posted $1.86 per share earnings compared to the forecast of $1.12 per share.¬†

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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