The company now holds 226,331 bitcoins worth approximately $15 billion.
MicroStrategy, the software company listed on Nasdaq and is known for being the largest corporate holder of Bitcoin (BTC), acquired an additional 11,931 bitcoins for $786 million, according to a press release issued this Thursday morning.
Under the direction of CEO Michael Saylor, the company had 214,400 bitcoins at the end of April. With this recent acquisition, The company’s total holdings amount to 226,331 tokenswith an estimated value of almost $15 billion, based on the current price of Bitcoin, which is around $66,000. The average purchase price of these bitcoins has been $36,798 each, totaling approximately $8.33 billion.
This latest purchase was made after the company completed an $800 million convertible note offering to institutional investors. Initially, the size of the offer was US$500 million, then it was increased to US$700 million and finally closed at US$800 million. In March, the company had added 9,245 BTC for US$623 million, after a similar debt issuance.
Bitcoin: Saylor’s bet
Since they began accumulating the cryptocurrency in 2020, Saylor and MicroStrategy have led a movement to adopt Bitcoin as a reserve asset for other corporate treasuries. Although some companies have added modest amounts of Bitcoin to their balance sheets, it is worth highlighting Semler Scientific (SMLR), which has also begun purchasing Bitcoin as a significant treasury asset and has sought to tap the capital markets to acquire more Bitcoin than it its current market capitalization might suggest.
MicroStrategy shares have risen tenfold since the company began its Bitcoin purchases four years ago. Similarly, Semler shares have risen more than 60% since announcing their first Bitcoin acquisitions in late May. Recently, brokerage firm Bernstein initiated coverage of MicroStrategy, setting a $2,890 price target on its stock and giving it an outperform rating. Currently, MSTR shares are up 2% pre-market, standing at $1,507.
Since August 2020, MicroStrategy has been accumulating Bitcoin as part of its treasury management strategy. According to Saylor, Bitcoin offers a hedge against inflation and an alternative to traditional assetsa perspective that has gained relevance in the face of recent economic fluctuations and the devaluation of several fiat currencies.
Source: Ambito
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