Key Points
- MicroStrategy continues its Bitcoin buying pattern, now holding nearly $45 billion in assets.
- Despite market corrections and criticism, the company remains committed to further Bitcoin acquisitions.
MicroStrategy has continued its weekly acquisition of Bitcoin for the seventh week in a row, solidifying its status as the largest corporate holder of Bitcoin with assets nearing $45 billion.
Michael Saylor, the executive chairman of MicroStrategy, announced that the company purchased an additional 5,262 Bitcoin for $561 million at an average price of $106,662 prior to the recent market correction. This acquisition boosts the Virginia-based software company’s Bitcoin holdings to 444,262 BTC, further establishing its position as the leading institutional Bitcoin holder.
Initial Investment and Unrealized Profits
After an initial investment of $27.7 billion, MicroStrategy has recorded nearly $15 billion in unrealized profits, despite the recent downturn in the cryptocurrency market.
However, Saylor’s weekly announcement was met with skepticism as critics pointed out the disparity between Bitcoin’s current price and MicroStrategy’s buying price.
Criticism and Future Plans
Following a market-wide correction triggered by hawkish moves from the Federal Reserve, Bitcoin was trading below $95,000. Critics, including U.S. stockbroker and economist Peter Schiff, criticized Saylor’s strategy, arguing that MicroStrategy should focus on buying the dip to maximize shareholder value.
Despite the criticism, MicroStrategy remains committed to its Bitcoin acquisition strategy. In a Form 8-K filing with the Securities and Exchange Commission, the company disclosed that it had sold approximately 1.32 million shares of MSTR convertible notes, raising over $7 billion. These funds are reportedly earmarked for further Bitcoin acquisitions.
While MicroStrategy announced its smallest purchase in seven weeks, Metaplanet, often referred to as Japan’s MicroStrategy, revealed its largest Bitcoin purchase to date. The Tokyo-based company invested $60.6 million into its Bitcoin treasury.