MicroStrategy Buys $623 Million Worth of Bitcoin, Now Holds Over 1% of Total Supply
MicroStrategy, led by Michael Saylor, has acquired an additional 9,245 bitcoins for $623 million in cash. This latest purchase brings the company’s total bitcoin holdings to 214,246 BTC, which is equivalent to over 1% of the total bitcoin supply.
MicroStrategy’s Bitcoin Acquisition Details
- The acquisition took place between March 11 and March 18.
- The average price per bitcoin was $67,382, including fees and expenses.
- The purchase was funded using $592.3 million from a recent private offering of convertible senior notes and $30.7 million of excess cash.
With this latest acquisition, MicroStrategy’s aggregate purchase price for all bitcoins now stands at approximately $7.53 billion. However, the current market value of their bitcoin holdings exceeds $13.5 billion.
It’s worth noting that the price of bitcoin has experienced significant volatility this year. It reached a peak above $73,000 before retracing to its current level of around $63,000.
MicroStrategy’s average purchase price per bitcoin, including fees and expenses, is approximately $35,160.
MicroStrategy’s Growing Bitcoin Holdings
MicroStrategy has been actively accumulating bitcoin since August 2020. The company sees bitcoin as a long-term store of value and a hedge against inflation. Here are some key points about MicroStrategy’s growing bitcoin holdings:
Significance of Holding Over 1% of Total Supply
By acquiring over 1% of the total bitcoin supply, MicroStrategy solidifies its position as a major player in the cryptocurrency market. This significant holding demonstrates the company’s confidence in bitcoin as an asset class.
Benefits of Bitcoin as a Treasury Reserve Asset
MicroStrategy’s decision to allocate a significant portion of its treasury reserves to bitcoin is based on several factors:
- Protection against inflation: Bitcoin’s limited supply and decentralized nature make it resistant to inflationary pressures.
- Store of value: MicroStrategy believes that bitcoin can act as a reliable store of value over time.
- Potential for capital appreciation: The company expects the value of bitcoin to increase in the long term, providing potential capital appreciation.
Continued Accumulation Strategy
MicroStrategy has made it clear that it intends to continue accumulating bitcoin. The company’s CEO, Michael Saylor, is a vocal advocate for bitcoin and has stated that he plans to hold onto his bitcoin holdings for the long term.
This latest purchase of 9,245 bitcoins reinforces MicroStrategy’s commitment to acquiring more bitcoin as part of its treasury reserve strategy.
Hot Take: MicroStrategy Expands Bitcoin Holdings with $623 Million Purchase
MicroStrategy’s recent acquisition of 9,245 bitcoins for $623 million further strengthens its position as a major holder of the cryptocurrency. With over 1% of the total bitcoin supply now in its possession, MicroStrategy demonstrates its confidence in bitcoin as an asset class and a long-term store of value.
The company’s continued accumulation strategy aligns with its belief in the potential for bitcoin’s capital appreciation and protection against inflation. As the price of bitcoin continues to fluctuate, MicroStrategy remains committed to its bitcoin holdings and sees them as a strategic move for its treasury reserves.
With its substantial bitcoin holdings and ongoing accumulation efforts, MicroStrategy sets itself apart as a prominent player in the cryptocurrency market. Its actions serve as a testament to the growing acceptance and adoption of bitcoin among institutional investors.
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