MicroStrategy Acquires $786 Million Worth of Bitcoin

MicroStrategy has recently made a significant investment in Bitcoin, purchasing $786 million worth of the cryptocurrency, as disclosed in an SEC filing. This move is part of the software firm’s ongoing strategy to increase its holdings of Bitcoin.

The company raised $800 million by selling convertible senior notes, with the actual purchase amounting to $786 million after deducting costs. Just two days after raising these funds, MicroStrategy acquired around 11,931 Bitcoin at an average cost of $65,883 per coin, in line with its stated intention when selling the notes.

This recent purchase brings MicroStrategy’s total Bitcoin holdings to approximately 226,331 coins, valued at around $15 billion at current prices. However, the firm states that it acquired these coins at an aggregate purchase price of $8.33 billion, translating to roughly $36,800 per coin, significantly below Bitcoin’s current valuation.

MicroStrategy, co-founded by Bitcoin advocate Michael Saylor, already held the title of the largest institutional holder of Bitcoin before this latest acquisition, further solidifying its position in the crypto space. The firm’s stock price has seen significant growth in 2024, rising by 144% to $1,469.43 since the beginning of the year, reaching an all-time high in March.

Despite the volatility in the crypto market, MicroStrategy’s strategic approach to investing in Bitcoin has paid off, aligning its fortunes with the performance of the leading cryptocurrency. As Bitcoin maintains a stable price around $64,910, MicroStrategy continues to demonstrate its commitment to digital assets and its belief in the long-term potential of Bitcoin.