MicroStrategy Increases Its Bitcoin (BTC) Holdings by 10%, Spends Roughly $600M on Asset
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MicroStrategy Increases Its Bitcoin (BTC) Holdings by 10%, Spends Roughly $600M on Asset
Business intelligence firm MicroStrategy Inc (NASDAQ: MSTR) may be living up to its reputation as the largest corporate holder of Bitcoin (BTC). This follows a recent announcement by the company where it claimed to have added 16,130 BTC to its stack of prized assets in November.
At the average price of $36,785, the purchase was worth approximately $593.3 million. This means that MicroStrategy now has a total of 174,530 Bitcoins, which it paid $5.28 billion for, at an average price of $30,252 per coin.
It might be worth mentioning that the November buy meant that the firm may be upping its Bitcoin acquisition strategy. That is considering that it had only purchased 6,607 BTC since Q3 began.
With the new additions, the value of MicroStrategy’s BTC holdings now represents over 70% of the company’s total stock market valuation of $7.3 billion.
MicroStrategy’s Unrivaled Bitcoin (BTC) Acquisition
MicroStrategy undeniably holds the biggest Bitcoin treasury for a corporate entity. It has a holding that is more than 12 times larger than its closest institutional counterpart, Bitcoin miner Marathon Digital. According to Bitcoin Treasuries, Marathon has no more than 13,726 Bitcoins which is only worth $517 million at current prices.
The firm made its first major Bitcoin purchase in August 2020. Since then, it has shown no signs of stopping its acquisitions of the popular digital asset. Even at times when BTC price fluctuations may put pressure on buyers, MicroStrategy has stayed true to its cause.
About the company’s continuous investment in Bitcoin, founder and CEO Michael Saylor has explained that Bitcoin is only a reserve asset for the company. So, ultimately, MicroStrategy is never really under any inflationary pressures due to BTC price fluctuations.
Meanwhile, MicroStrategy is currently looking to raise at least $750 million from the sale of a class A common stock. It has agreed with Cowen and Company, Canaccord Genuity and BTIG in this regard.
MSTR shares fell 1.74% to $498.30 in early trading on the Nasdaq.
MicroStrategy Increases Its Bitcoin (BTC) Holdings by 10%, Spends Roughly $600M on Asset