Key Points
- MicroStrategy, a software firm, has acquired an additional 11,931 Bitcoin for $786 million.
- With this new acquisition, the company now holds 226,331 Bitcoins, worth nearly $15 billion.
Nasdaq-listed software company, MicroStrategy (MSTR), known for being the largest corporate holder of Bitcoin (BTC), has recently announced the acquisition of an additional 11,931 BTC. The purchase, which cost $786 million, was announced on June 20, 2024.
MicroStrategy’s Bitcoin Strategy
Since 2020, MicroStrategy’s Bitcoin strategy has been led by Executive Chairman Michael Saylor. By the end of April, the company had amassed 214,400 Bitcoins. The latest acquisition brings their total holdings to 226,331 Bitcoins, valued at approximately $15 billion based on the current price of $66,000 per Bitcoin. The company spent an average of $36,798 on each Bitcoin, totaling around $8.33 billion.
The company funded the recent purchase through an $800 million convertible note offered to institutional investors. Initially, they aimed to raise $500 million, then increased it to $700 million, and finally closed at $800 million. This strategy mirrors their approach in March when they added 9,245 BTC for $623 million following another debt issuance.
Market Reactions and Implications
MicroStrategy’s aggressive Bitcoin acquisition strategy has sparked conversations about the feasibility and risks of adopting cryptocurrency as a corporate reserve asset. Analysts are closely watching how these decisions will shape the broader financial landscape and influence other companies’ approaches to cryptocurrency investment.
MicroStrategy’s latest Bitcoin purchase underscores its unwavering commitment to Bitcoin as a primary asset. The company’s bold strategy and substantial investments underscore a growing confidence in the long-term value and stability of Bitcoin, setting a precedent for other corporations contemplating similar financial strategies.
