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MicroStrategy Continues Aggressive Bitcoin Buying Spree
MicroStrategy’s Michael Saylor has been making headlines with another substantial Bitcoin purchase, adding 3,000 more BTC to the company’s portfolio. This move comes as part of an ongoing strategy by the world’s largest corporate holder of Bitcoin to increase its crypto holdings. With the latest purchase, MicroStrategy’s total crypto holdings now stand at 193,000 BTC, representing nearly 1% of Bitcoin’s entire circulating supply.
Latest Bitcoin Purchase
MicroStrategy acquired an additional 3,000 BTC for approximately $155 million at an average price of $51,813 per bitcoin. This recent purchase follows a series of strategic buying activities conducted between February 15 and 25. The company funded these purchases through the issuance and sale of shares under the Sales Agreement and Excess Cash, as indicated in a form 8-K filed with the U.S. Securities and Exchange Commission (SEC).
Ongoing Acquisition Strategy
MicroStrategy’s approach involves diluting its stock to raise cash and subsequently invest in BTC. Notably, the company’s outstanding shares have increased significantly since it started purchasing BTC in 2020. As a result of this strategic buying, MicroStrategy’s entire Bitcoin stash, now valued at $10.15 billion, was initially acquired for an aggregate purchase price of $6.09 billion, demonstrating a 66% overall profit.
MicroStrategy Versus Bitcoin ETFs
MicroStrategy’s executive chairman, Michael Saylor, has positioned the company as an alternative to Bitcoin ETFs, emphasizing additional benefits such as zero management fees, a revenue-generating software business, and the use of leverage. This has led to significant outperformance in comparison to Bitcoin ETFs, with MicroStrategy (MSTR) recording a 59% increase, while the iShares Bitcoin Trust (IBIT) saw a 27% gain by February 26.
Market Impact and Analysts’ Observations
The surge in MicroStrategy’s balance sheet has caught the attention of analysts who predict that the firm may soon qualify to be listed as part of the S&P 500. Such a development could potentially expose the company, and consequently Bitcoin, to an influx of passive flows from regular SPY investors.
Overall, MicroStrategy’s consistent and aggressive approach to Bitcoin investments continues to garner attention and could have broader implications for the cryptocurrency market as a whole.
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.
