MicroStrategy spends $1.1 billion to buy 70,000 bitcoins; CEO: Company will publicly share its coin-buying playbook in early February

The news of the U.S. listed company MicroStrategy buying Bitcoin is no longer new, as it made another purchase of Bitcoin on the evening of January 22. Furthermore, in early February, MicroStrategy's CEO Michael Saylor will publicly teach enterprises how to use company funds to buy Bitcoin.

MicroStrategy has purchased approximately 314 bitcoins for $10.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $31,808 per bitcoin. We now hold approximately 70,784 bitcoins.https://t.co/zMJSH29bmC

— Michael Saylor⚡️ (@saylor) January 22, 2021

Review of MicroStrategy's Bitcoin Purchase Record

Since August 2020, MicroStrategy has been using the company's cash assets to buy Bitcoin. As of now, they have purchased 70,784 Bitcoins at a cost of $1.135 billion, with an average cost of $16,035 per Bitcoin.

MicroStrategy's Bitcoin Purchase: Assets and Stock Price Both Prosper

Among publicly traded companies holding Bitcoin as part of their assets, MicroStrategy holds the most. As of the deadline, the value of Bitcoin held by MicroStrategy is $2.326 billion, with a purchase cost of $1.135 billion, resulting in doubled profits.

On the other hand, MicroStrategy also issued convertible bonds to raise funds from investors to purchase Bitcoin. These bonds can be converted into cash or MicroStrategy's stock. After announcing a new wave of Bitcoin purchases on the 23rd, MicroStrategy's stock price surged over 10% again.

Looking back from August to now, when Bitcoin was first purchased, MicroStrategy's stock price was at $134. By the closing on the 23rd, MicroStrategy's stock price had risen to $577. MicroStrategy's original profitable business did not perform exceptionally well compared to the past, and these gains can be attributed entirely to the action of "buying Bitcoin."

Teaching Companies How to Buy Bitcoin in Early February

MicroStrategy CEO Michael Saylor said in an interview on "Power Lunch":

"In the first week of February, we will gather CEOs, executives, and advisors from companies who all want to know how to put Bitcoin on their balance sheets. We will be transparent about the method."

#Bitcoin down 20% from the highs and @MicroStrategy CEO @michael_saylor is buying the dip. He says the cryptocurrency could replace gold, bonds, the S&P 500 and even the Dow as the primary monetary index $MSTR $SPY pic.twitter.com/tAKhis4blX

— Power Lunch (@PowerLunch) January 22, 2021