In Brief:
- Michal Saylor announced the purchase of an additional 7,002 BTC with an average value of $59,187.
- Microstrategy Bitcoin stake grows to 121,044 BTC with an average value of $29,044.
On Monday, Microstrategy founder and CEO Michael Saylor announced in a tweet about the purchase of an additional 7,002 Bitcoin (BTC) after spending $414.4 million in cash in the fourth quarter of this year. The average price of an individual Bitcoin is nearly $59,187.
The fund for the recent Bitcoin purchase was raised through selling Microstrategy’s 571,001 shares at a $732.16 price for each.
With the buying of additional 7,002 shares, now Microstrategy is holding up 121,044 BTC at the time of writing, which total worth at current market value is $3.57 billion. Michal has revealed that the total average purchase of a single Bitcoin is around $29,534.
Last year, The company revealed that it would acquire Bitcoin for its treasury reserve asset citing its long-term return potential.
According to Phong Le, president, and chief financial officer of Microstrategy, the Bitcoin stakes are classified as “indefinite-lived intangible assets under applicable accounting rules”. In other words, when the Bitcoin market value goes below its book value, the company will need to identify impairment charges. These impairment charges can offset its corporate income tax liability.
Last Year, many firms, individuals, and crypto whales had increased a Bitcoin stake after buying the dip. In this list, El Salvador also bought the dip. Currently, El Salvador holds 1220 BTC after the last buying of 100 Bitcoins.
