MicroStrategy Adds $786M Worth of BTC to Its Treasure Chest
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In a bold move that’s become characteristic of the company, MicroStrategy has once again expanded its Bitcoin holdings. The business intelligence firm, led by Bitcoin enthusiast Michael Saylor, just added 11,931 BTC to its already massive stash. This latest purchase cost the company a whopping $786 million, averaging about $65,883 per Bitcoin.
MicroStrategy has acquired an additional 11,931 BTC for ~$786.0M using proceeds from convertible notes & excess cash for ~$65,883 per #bitcoin. As of 6/20/24, $MSTR hodls 226,331 $BTC acquired for ~$8.33B at average price of $36,798 per bitcoin.https://t.co/jE9dGqqnON
— Michael Saylor⚡️ (@saylor) June 20, 2024
Let’s break down what this means.
MicroStrategy now holds a total of 226,331 Bitcoin. That’s worth nearly $15 billion at current prices of $65,000. It’s a staggering amount that cements the company’s position as the largest corporate holder of Bitcoin.
But here’s where it gets interesting. MicroStrategy’s average purchase price for all its Bitcoin is $36,798. That’s way below the current market price. In simple terms, they’re sitting on a hefty paper profit.
How did they pull off this latest buy?
MicroStrategy Follows Up on $800 Million Debt Offering for Bitcoin
Just last week, the company completed an $800 million convertible note offering. These are like special loans that can be turned into stock later. MicroStrategy used most of this money to buy more Bitcoin, like it promised.
This move isn’t out of the blue. MicroStrategy started buying Bitcoin back in 2020. Since then, they’ve been on a mission to get other companies to use Bitcoin as a reserve asset.
It should come as no surprise that the market likes what MicroStrategy is doing. The company’s stock price has shot up about ten times since it started buying Bitcoin four years ago. Just after this latest purchase, their stock was up 2% in pre-market trading.
But MicroStrategy isn’t the only company jumping on the Bitcoin bandwagon. A firm called Semler Scientific has recently started adding Bitcoin to its balance sheet too. Their stock price has jumped over 60% since they announced their first Bitcoin buy in late May.
What Does This Mean for the Market?
What does all this mean for the crypto world? It shows that some big players still have faith in Bitcoin, even after its recent price swings. MicroStrategy’s moves often set the tone for how other companies view Bitcoin.
However, it’s important to remember that investing in Bitcoin is risky. Its price can change a lot in a short time. MicroStrategy’s strategy is bold, but it’s not for everyone.
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