MicroStrategy Acquires Additional $1.1 Billion in Bitcoin
Software company MicroStrategy has made a significant move in the crypto space, acquiring an additional 18,300 Bitcoin valued at nearly $1.1 billion between August 6 and September 12, according to the firm’s founder and Chairman Michael Saylor. This purchase, at an average price of around $60,408 per token, includes fees and expenses, as detailed in an SEC filing. The current price of Bitcoin stands at $58,214.
This latest acquisition marks MicroStrategy’s largest Bitcoin purchase since February 2021 when it bought 19,452 BTC by selling $1 billion in debt. With this recent addition, the company now holds a total of 244,800 BTC, equivalent to approximately $14.14 billion according to CoinGecko. The funding for these purchases came from the sale of 8,048,449 shares of the company’s stock.
MicroStrategy has solidified its position as the largest corporate holder of Bitcoin, controlling about 1% of the total Bitcoin market capitalization. This dwarfs the holdings of other players like miner Marathon Digital Holdings with approximately $1.5 billion in Bitcoin and Riot Platforms with around $579 million in Bitcoin.
The company initiated its aggressive Bitcoin purchasing strategy in August 2020 when Bitcoin prices were around $12,000. The CEO, Michael Saylor, has been vocal about his optimistic outlook on Bitcoin’s future, predicting that it could reach $13 million over the next 21 years. He believes Bitcoin could eventually represent 7% of the world’s capital, up from the current 0.1%.
MicroStrategy’s Bitcoin investment strategy has proven successful, with the company’s share price soaring over 800% since it began acquiring Bitcoin in 2020. The average purchase price of their Bitcoin holdings was $38,585 per coin, representing a nearly 51% gain at the current Bitcoin price.
In a similar vein, Japanese venture capital firm Metaplanet recently acquired ¥300 million ($2 million) worth of BTC, following a strategic shift announced earlier this year. MicroStrategy’s stock price has seen a nearly 3% increase, currently standing at around $134.50, according to Google Finance.
MicroStrategy’s continued bullish stance on Bitcoin and its strategic acquisitions highlight the growing trend of corporations entering the crypto space as part of their investment strategies.
