MicroStrategy, led by Michael Saylor, Purchases 11.9K Additional Bitcoin for $786 Million

Nasdaq-listed software company MicroStrategy (MSTR), the leading corporate holder of bitcoin (BTC), has recently purchased an additional 11,931 BTC for $786 million, as stated in a press release on Thursday morning. Led by Executive Chairman Michael Saylor, the firm held 214,400 bitcoins as of the end of April. With this latest acquisition, MicroStrategy’s total bitcoin holdings now stand at 226,331 tokens, valued at nearly $15 billion based on bitcoin’s current price of around $66,000. The company acquired these bitcoins at an average price of $36,798 each, totaling approximately $8.33 billion.

This recent acquisition follows MicroStrategy’s $800 million convertible note offering to institutional investors. Initially set at $500 million, the offering size was increased to $700 million and eventually closed at $800 million. In March, the company added 9,245 BTC for $623 million after raising funds through a similar debt issuance.

MicroStrategy and Saylor began accumulating bitcoin, the oldest and largest cryptocurrency, in 2020. They have been advocating for the adoption of BTC as a reserve asset for corporate treasuries. While some companies have added small amounts of bitcoin to their balance sheets, Semler Scientific (SMLR), a U.S.-listed company, has recently made significant moves by incorporating bitcoin as a treasury asset. Similar to MicroStrategy, Semler is looking to access capital markets to acquire bitcoin in substantial quantities beyond its current market cap.

Since MicroStrategy’s initiation of bitcoin purchases four years ago, the company’s shares have surged nearly tenfold. Likewise, Semler’s shares have risen by over 60% since revealing its initial bitcoin purchases in late May.

In a recent development, brokerage firm Bernstein started covering MicroStrategy, setting a $2,890 price target for the company’s shares and rating them as outperform. Currently, MSTR is up by 2% premarket, trading at $1,507.

The cryptocurrency market continues to witness significant movements and investments from corporate entities like MicroStrategy, indicating a growing interest and adoption of digital assets in the financial sector.