MicroStrategy buys more bitcoin for over $414 million in cash

Bitcoin • November 29, 2021, 8:25AM EST
UPDATED: November 29, 2021, 11:06AM EST
The Block

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.

AUTHOR

Yogita Khatri profile picture Yogita Khatri

Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

See More
Connect on

WHO WE ARE

The Block is a news provider that strives to be the first and final word on digital assets news, research, and data.

+ Follow us on Google News
Connect with the block on

More by Yogita Khatri