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MicroStrategy Increases Bitcoin Holdings
MicroStrategy, known as the world’s largest corporate holder of Bitcoin (BTC), has recently acquired an additional 9,245 coins at an average price of $67,382. This purchase has elevated the firm’s total holdings to 214,246 BTC, surpassing 1% of the total Bitcoin supply.
Michael Saylor’s Bitcoin Investment
Michael Saylor, the co-founder and chairman of MicroStrategy, revealed that the company’s total Bitcoin book cost now stands at $7.53 billion, with an average purchase price of $35,160 per coin. This information is supported by saylortracker.com, which monitors MicroStrategy’s Bitcoin investments based on Saylor’s public declarations.
Market Performance and Future Plans
Despite the recent purchase being above MicroStrategy’s existing book cost and Bitcoin’s current market price, the company’s overall investment remains profitable, with $6.1 billion in unrealized profit. Saylor emphasized that there are no immediate plans to realize any profits, advocating for a long-term hold strategy.
In a recent interview with CNBC, Saylor compared Bitcoin to digital property, urging investors to hold it for the long term, envisioning it as a valuable asset akin to a billion-dollar building in cyberspace.
MicroStrategy’s Financial Moves
MicroStrategy recently completed a $603.75 million offering of convertible notes with a 0.875% coupon, due for repayment in 2031. This follows a previous purchase of over $821.7 million in BTC after raising $700 million through convertible notes with a 0.625% coupon.
The company’s stock, MSTR, has seen an 80% increase year-to-date, outperforming BTC’s 41% gain over the same period. Despite a recent 24% decline in MSTR shares over the past five days, bullish investors highlight the company’s access to cheap debt and profitable software business as factors supporting its Bitcoin acquisition strategy.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
