Software company MicroStrategy announced Monday that it had bought an additional 7,002 bitcoins for around $414.4 million in cash.
The 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, i.e., during the period between October 1 and November 29.
MicroStrategy now holds a total of 121,044 bitcoins, worth nearly $7 billion at current prices. The company is currently sitting on a huge paper profit of over $3 billion as it bought these bitcoins at an aggregate purchase price of $3.57 billion. Its average purchase price is about $29,534 per bitcoin, and bitcoin is currently trading at around $57,280.
While MicroStrategy's bitcoin bet is paying off so far, what happens if bitcoin crashes at some point in the future? Some observers recently told The Block that if the price of bitcoin were to plunge far enough, MicroStrategy could struggle to pay its over $2 billion debt that it has taken on to purchase its bitcoins.