MicroStrategy, a prominent player in the cryptocurrency world, recently made a calculated move to increase its Bitcoin holdings significantly. Over the period between April and June 2024, the company acquired nearly 12,000 bitcoins, bringing its total holdings to an impressive 226,331 units valued at almost $15 billion.
In an official filing with the SEC, it was revealed that the purchase took place from late April to June 19 at an average cost of US$65,883 per bitcoin, amounting to a total investment of approximately US$780 million. As of the time of writing, the price of BTC stood at US$63,693.53, showing a 3.7% decrease in the last 24 hours.
Interestingly, MicroStrategy now owns about 1% of the total available Bitcoin supply, solidifying its position as the largest publicly traded corporate holder of the cryptocurrency. The company has invested around US$8.33 billion to acquire this stock at an average cost of US$36,798 per bitcoin. This acquisition was made possible through a successful convertible note offering that initially aimed to raise US$500 million but was expanded to US$700 million due to high demand, ultimately raising US$800 million.
CEO Michael Saylor has been a vocal proponent of Bitcoin as a hedge against inflation and a reliable store of value, driving the company’s ongoing investments in cryptocurrencies. Despite recent market fluctuations leading to an 8% drop in MicroStrategy’s shares over the last week, they have seen a remarkable increase of over 345% in the past year, illustrating the inherent volatility in the cryptocurrency market and the company’s reliance on this sector.
MicroStrategy’s strategic approach has inspired other US and international companies like DeFi Technologies and Semler Scientific in the US, as well as Metaplanet in Japan, to integrate Bitcoin into their financial strategies, showcasing the company’s growing influence.
By June 20, 2024, MicroStrategy and its subsidiaries collectively held 226,331 bitcoins, underscoring their confidence in Bitcoin’s potential for future growth. With an average purchase price of $36,798 per bitcoin, MicroStrategy has carefully managed its acquisitions to optimize its holdings, solidifying its status as a prominent player in the cryptocurrency industry.