MicroStrategy buys more bitcoin for $25 million

MicroStrategy has continued its bitcoin-buying spree. The Nasdaq-listed enterprise software company announced Tuesday that it has bought an additional 660 bitcoins for around $25 million in cash.

The purchase was made between December 30 and January 31 at an average price of around $37,865 per bitcoin, inclusive of fees and expenses.

The company now holds a total of 125,051 bitcoins (worth nearly $5 billion at current prices). MicroStrategy’s bitcoin bet appears to be paying so far as it acquired these bitcoins at an aggregate purchase price of $3.78 billion and an average purchase price of approximately $30,200 per bitcoin.

That’s a $1.22 billion gain at current prices, with bitcoin around $38,700.

MicroStrategy CFO Phong Le recently said that the company will continue to purchase bitcoin despite recent downturns. But what happens to MicroStrategy 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.