MicroStrategy Acquires More Bitcoin, Adding to Its Holdings
MicroStrategy, the world’s largest corporate holder of Bitcoin, has announced its latest acquisition of the market’s largest cryptocurrency. According to an SEC filing submitted on Monday, the firm purchased approximately 5,445 Bitcoin between August 1 and September 24 for about $147.3 million in cash. The average price per coin, inclusive of fees and expenses, was approximately $27,053.
MicroStrategy’s Growing Bitcoin Holdings
With this recent purchase, MicroStrategy now holds a total of about 158,245 Bitcoin acquired at an average purchase price of approximately $29,582. The filing reveals that the aggregate purchase price for MicroStrategy’s Bitcoin holdings has amounted to $4.68 billion.
Confidence in Bitcoin as a Store of Value
MicroStrategy’s ongoing accumulation of Bitcoin highlights its confidence in the asset as a store of value and a long-term investment. However, the current bear market has affected the company’s historical investments in Bitcoin.
Current Value of MicroStrategy’s Bitcoin Holdings
As of now, with Bitcoin trading just above $26,100 and down 1.7% on the day, the fiat value of Bitcoin held on MicroStrategy’s balance sheet is roughly $4.1 billion.
A Hedge Against Inflation
In August 2020, MicroStrategy started acquiring cryptocurrency with the primary motivation being to use it as a hedge against inflation. Co-founder Michael Saylor emphasized that their strategy is to buy and hold Bitcoin consistently and responsibly.
Financial Performance
In Q1 2023, MicroStrategy saw its first profitable quarter since 2020 due to a one-time income tax benefit. The company sustained profitability in the second quarter with $22.2 million in net income, despite a $24.1 million impairment charge on its Bitcoin holdings.
Hot Take: MicroStrategy Continues to Expand Its Bitcoin Holdings
MicroStrategy’s latest acquisition of Bitcoin demonstrates its ongoing commitment to accumulating the cryptocurrency. Despite the current market conditions, the company remains confident in Bitcoin’s long-term value and sees it as a hedge against inflation. With an impressive aggregate purchase price of $4.68 billion for its Bitcoin holdings, MicroStrategy is positioning itself as a significant player in the crypto space.
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