MicroStrategy Acquires $800 Million for Bitcoin Purchase
In a bid to acquire more Bitcoin (BTC) at discounted prices, MicroStrategy Inc. (NASDAQ: MSTR) completed its offering of 2.25 percent convertible senior notes worth $800 million. The company plans to use the funds to acquire more Bitcoins mainly.
“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes,” the company noted.
MicroStrategy’s Bitcoin Acquisition
MicroStrategy joins other whales in the acquisition of Bitcoin as they recently acquired an additional 11,931 BTC for approximately $786 million using the proceeds from convertible notes and excess cash, at an average price of about $65,883 per Bitcoin. As of the latest update, MicroStrategy holds 226,331 BTC acquired for about $8.33 billion at an average price of $36,798 per Bitcoin.
- MicroStrategy’s move to acquire more Bitcoins is in line with other deep-pocketed investors seeking to invest in the flagship cryptocurrency.
- The total value of MicroStrategy’s Bitcoin holdings is now approximately $15 billion, based on the current price of around $66,000 per BTC.
- Despite notable selling pressure from miners, the supply of Bitcoin on exchanges has been decreasing, thanks to the increasing demand from institutional investors looking to hedge against high inflation in fiat currencies.
Market Implications of MicroStrategy’s Bitcoin Acquisition
The significant Bitcoin acquisition by MicroStrategy surpasses the $152 million net cash outflows from US-based spot Bitcoin ETFs on Wednesday, indicating a stronger bullish sentiment in the market. This move has positively impacted the overall Bitcoin fundamentals, especially during the recent crypto correction that briefly pushed Bitcoin below $65,000.
If Bitcoin continues to showcase bullish momentum in the coming days, there is a possibility that the flagship cryptocurrency could reclaim the $67,000 support level and rally towards its previous all-time high.
Hot Take: Seizing Opportunities in the Crypto Market
As a crypto enthusiast, staying updated on significant developments in the market, such as MicroStrategy’s strategic move to acquire more Bitcoin, can help you make informed investment decisions. Keep an eye on market trends, institutional investments, and regulatory updates to maximize your potential gains in the crypto space.
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