MicroStrategy Buys $458M in Bitcoin

MicroStrategy Expands Its Bitcoin Holdings by $458 Million

This week, MicroStrategy bought another $458 million in Bitcoin (BTC), adding 7,420 BTC to its corporate treasury. This acquisition raises the company’s total Bitcoin holdings to 252,220 BTC, with an average purchase price of $39,266 per coin.

MicroStrategy’s recent purchase solidifies its status as the leading corporate holder of Bitcoin, now possessing a stash valued at $15.9 billion.

Strategic Moves and Financial Maneuvers

According to an SEC filing on Friday, MicroStrategy also raised $1.01 billion through a convertible senior note offering, with the intention to use the funds for further Bitcoin purchases.

Although it remains unconfirmed if the recent $458 million Bitcoin buy was financed by this note, MicroStrategy’s approach has generally involved combining debt and internal funds to acquire Bitcoin. The company, led by Michael Saylor, has consistently increased its Bitcoin holdings over the past four years, even amid market volatility.

MicroStrategy’s Bitcoin Strategy

Recently, MicroStrategy disclosed a significant purchase of 18,300 Bitcoin, valued at around $1.1 billion. This was the company’s largest acquisition since 2021. Earlier this week, MicroStrategy announced a plan to raise $700 million both to pay down existing debts and buy more Bitcoin.

Michael Saylor, co-founder and former CEO, has been an outspoken advocate for Bitcoin as a corporate treasury asset. MicroStrategy made headlines in 2020 when it became the first publicly traded company to convert a significant portion of its cash reserves into Bitcoin. Saylor has championed Bitcoin as a hedge against inflation and a more reliable store of value compared to traditional assets such as gold and cash.

Saylor firmly believes in Bitcoin’s long-term potential, even amidst market fluctuations. He argues that Bitcoin’s decentralized nature makes it a superior asset in unstable economic environments, calling it the “apex asset” whose value as a store of wealth will grow with increasing institutional interest.

MicroStrategy’s total Bitcoin purchases amount to nearly $9.9 billion. As a result, the company’s stock price rose by about 1% today, reaching approximately $146, marking a 113% increase year-to-date.

Edited by Andrew Hayward

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