Key Points
- MicroStrategy has purchased an additional 1,070 Bitcoin for roughly $101 million.
- The company’s total Bitcoin holdings now amount to 447,470 BTC, valued at over $44 billion.
MicroStrategy, a renowned business intelligence firm, has recently added 1,070 Bitcoin to its portfolio, spending approximately $101 million.
The acquisition was revealed in a filing with the Securities and Exchange Commission, with the firm stating that the average purchase price per Bitcoin was $94,004.
MicroStrategy’s Bitcoin Portfolio
This latest investment brings MicroStrategy’s total Bitcoin holdings to 447,470 BTC, acquired at a cumulative cost of $27.97 billion, inclusive of fees and expenses. The firm’s average acquisition cost per Bitcoin is currently $62,503.
At present market rates, MicroStrategy’s Bitcoin portfolio is worth over $44 billion, which is approximately 2.1% of Bitcoin’s fixed supply of 21 million coins.
Despite hitting a record high in November, MicroStrategy’s stock is currently trading at $352.03 per share as of January 6.
Funding Bitcoin Acquisitions
The recent Bitcoin purchase coincides with the sale of 319,586 MicroStrategy shares, which raised $101 million. This is part of the firm’s ongoing $21 billion equity and $21 billion fixed-income capital-raising program designed to fund further Bitcoin investments. Last week, MicroStrategy proposed a $2 billion preferred stock offering to expand this initiative.
Michael Saylor, co-founder and executive chairman of MicroStrategy, is a vocal advocate for Bitcoin. He sees Bitcoin not only as a wealth accumulation tool but also as a means to contribute to a larger humanitarian movement.
Despite some criticism of Saylor and MicroStrategy’s investment strategy, particularly concerning the premium-to-net-asset-value valuation and the equity- and debt-funded approach to Bitcoin investment, the crypto market largely continues to support the company with strong investor confidence.