Microstrategy Boosts Bitcoin Holdings to 174,530
Microstrategy, the Nasdaq-listed software intelligence firm, has acquired an additional 16,130 bitcoins. This brings their total holdings to 174,530 bitcoins, bought for approximately $5.28 billion. Michael Saylor, the firm’s chairman and former CEO, made the announcement on social media.
Details of the Acquisition
The additional coins were purchased in cash between November 1 and November 29, according to Microstrategy’s filing with the U.S. Securities and Exchange Commission (SEC). The average price of the bitcoins acquired was $36,785, resulting in a total spent of around $593.3 million.
Impressive Performance Since Bitcoin Adoption
Microstrategy’s stock has soared by 321% since the company implemented its bitcoin strategy on August 10, 2020. This outperforms major asset classes and indices, including a 221% rise in the price of bitcoin, a 36% increase in the S&P 500, and a 30% surge in the Nasdaq Composite index. In contrast, gold, silver, and bonds all experienced declines during this period.
Termination of Sales Agreement
In addition to the bitcoin acquisition, the company terminated its sales agreement with Cowen, Canaccord, and Berenberg Capital Markets. This agreement allowed Microstrategy to issue and sell shares of its common stock with an aggregate offering price of up to $750 million. The company previously used the proceeds from stock sales to acquire bitcoin.
Bitcoin Sees Long-Term Value
Microstrategy’s bitcoin strategy aims to provide long-term value for shareholders. Saylor believes that bitcoin is a reliable store of value and an attractive investment asset with greater potential for appreciation than holding cash. He emphasizes that bitcoin has become a significant part of the global financial system, offering benefits to individuals and institutions.
Hot Take: Microstrategy Continues to Expand Bitcoin Portfolio, Outperforming Traditional Assets
Microstrategy’s latest acquisition of 16,130 bitcoins brings its total holdings to 174,530. Since adopting its bitcoin strategy, the software intelligence firm’s stock has outperformed major asset classes and indices, including a 321% surge in share price. This growth is driven by the inherent value and long-term potential of bitcoin as a store of value. Microstrategy’s actions demonstrate a strong belief in the cryptocurrency and its ability to provide substantial returns. As more companies and institutions enter the crypto space, bitcoin’s prominence in the global financial system is set to increase further.
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