MicroStrategy’s Latest Bitcoin Purchase: 3,000 BTC for $155 Million
MicroStrategy, the world’s largest corporate holder of Bitcoin (BTC), recently acquired an additional 3,000 BTC for $155.4 million. This brings their total crypto holdings to 193,000 BTC, which is nearly 1% of Bitcoin’s entire circulating supply.
MicroStrategy’s Bitcoin Holdings
The purchases were made using proceeds from the issuance and sale of shares under the Sales Agreement and Excess Cash. This ongoing strategy involves diluting MicroStrategy’s stock to raise cash and buy more BTC. In the last quarter, the company purchased $615 million worth of BTC using funds primarily raised through this method.
Since MicroStrategy started buying BTC in 2020, its outstanding shares have increased from around 9.2 million to 16.97 million. The company’s stock price has also risen significantly, going from $142 in August 2020 to $790 at present.
MicroStrategy Versus Bitcoin ETFs
MicroStrategy’s executive chairman, Michael Saylor, often compares the company to a Bitcoin ETF with additional benefits such as zero management fees, a revenue-generating software business, and leverage utilization.
In terms of performance, MicroStrategy (MSTR) has outperformed Bitcoin ETFs in recent months. As of February 26, MSTR had gained 59%, while the iShares Bitcoin Trust (IBIT) had only increased by 27%.
Adam Back, CEO of Blockstream, supports investing in MSTR for more significant profits based on BTC. He particularly highlights the company’s use of leverage to acquire more coins.
The Road Ahead for MicroStrategy
Analysts have suggested that MicroStrategy’s expanding balance sheet could potentially qualify the company to be listed as part of the S&P 500. If this happens, it could expose both MicroStrategy and Bitcoin to a surge of passive flows from regular SPY investors.
Hot Take: MicroStrategy’s Continued BTC Accumulation
MicroStrategy, the world’s largest corporate holder of Bitcoin (BTC), has recently purchased an additional 3,000 BTC for $155.4 million. This strategic move brings their total crypto holdings to 193,000 BTC, which is nearly 1% of Bitcoin’s entire circulating supply.
By diluting its stock and using the proceeds to acquire more BTC, MicroStrategy has been able to significantly increase its holdings since it began purchasing BTC in 2020. The company’s outstanding shares have risen from around 9.2 million to 16.97 million, while its stock price has surged from $142 to $790.
MicroStrategy’s executive chairman, Michael Saylor, considers the company to be like a Bitcoin ETF with added benefits such as zero management fees and leverage utilization. This has contributed to MicroStrategy outperforming Bitcoin ETFs in recent months.
The company’s expanding balance sheet could also lead to it being listed as part of the S&P 500, potentially attracting passive flows from regular SPY investors. Overall, MicroStrategy’s continued accumulation of BTC showcases its confidence in the long-term potential of Bitcoin.
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