Michael Saylor, CEO of corporate data analytics company MicroStrategy, announced Monday via Twitter and a company profile that the company had announced 7,002 additional Bitcoin (BTC) worth approximately $ 414.4 million at an average price of $ 59,187. Dollars per coin. MicroStrategy sold 571,001 shares in the company for $ 732.16 each between October 1 and November 29, for a total of $ 414.4 million in cash.

MicroStrategy bought an additional 7,002 bitcoins for ~ $ 414.4 million in cash at an average price of $ 59,187 each. #bitcoin. Since 11/29/21 we have #hodl ~ 121,044 bitcoins were purchased for ~ $ 3.57 billion with an average price of ~ $ 29,534 per bitcoin. $ MSTRhttps://t.co/OA8VWG1bZX

– Michael Saylor⚡️ (@saylor) November 29, 2021

As of Monday, the company now owns 121,044 BTC, valued at $ 3.57 billion. It was purchased at an average price of $ 29,534 per coin and includes the capital appreciation from previous coins.

In August 2020, MicroStrategy announced it would use Bitcoin as a treasury reserve asset, citing digital currency a “reliable store of value” and an attractive investment with more profitable potential than holding cash in the long term.

In addition, the company has highlighted the introduction of unprecedented stimulus measures by governments to fight COVID-19 as a catalyst for potential inflation and subsequent currency devaluation. Since then, MicroStrategy has been buying bitcoin almost every quarter.

Typically, day traders lose when the price of Bitcoin falls and profit when the price rises. However, this is not necessarily the case with MicroStrategy. Phong Le, President and Chief Financial Officer of MicroStrategy, said the company’s Bitcoin holdings are classified as “indefinite-life intangibles” under applicable accounting regulations, according to minutes of the results conference released last month. This means that at any time after the repayment, if the fair value or market value of Bitcoin falls below its book value, the company must record the loss fees. These loss expenses can then be used to legally offset the company’s corporate tax liability.