MicroStrategy Inc., the enterprise software firm that has embraced Bitcoin investing, said it paid an average $52,765 for nearly 20,000 tokens last week after issuing $1.05 billion in convertible bonds. MicroStrategy said it will continue buying Bitcoin using “excess cash" and may issue more debt to finance the purchases. MicroStrategy has paid an average price of almost $24,000 for its coins, giving it a gain of about 100%. The tokens can be subject to impairment losses that occur when the price dips below the carrying value at any time since the acquisition. MicroStrategy reported $70.7 million in cumulative impairment losses as of the end of last year that the company attributed to Bitcoin’s price fluctuations, according to its 10K filing.

Source: Mint February 25, 2021 04:30 UTC