MicroStrategy Keeps Buying Bitcoin As Total Holdings Reach $15 Billion

MicroStrategy recently disclosed acquiring nearly 12,000 additional Bitcoin (BTC) between April and late June 2024, bringing its total holdings to about 226,331 BTC valued at nearly $15 billion. According to a filing with the SEC, MicroStrategy purchased 11,900 BTC between late April to June 19th at an average price of $65,883 per BTC, totaling approximately $780 million.

Making Waves

Currently holding around 1% of all BTC, MicroStrategy stands as the largest publicly listed corporate holder of the cryptocurrency. The company has invested approximately $8.33 billion in accumulating its Bitcoin reserves, averaging an acquisition cost of $36,798 per BTC. The latest purchases were financed through a senior notes convertible offering, originally targeting $500 million but increased to $800 million due to strong demand.

CEO Michael Saylor has been a vocal advocate of Bitcoin, considering it a hedge against inflation and a store of value. This conviction has driven MicroStrategy to continually invest in the flagship cryptocurrency. Despite recent fluctuations, MicroStrategy remains tied to the volatile cryptocurrency market and its heavy reliance on Bitcoin for better or worse.

Domino Effect

The aforementioned Bitcoin-centric strategy has inspired other companies, both in the US and abroad, to adopt similar treasury strategies involving BTC. This includes firms like DeFi Technologies and Semler Scientific in the US, as well as Metaplanet in Japan, which have increased their Bitcoin holdings recently. This ongoing commitment to Bitcoin by MicroStrategy via strategic acquisitions and funding methods reflects its confidence in the potential of crypto for future appreciation and practical usage.

As of June 20th, MicroStrategy and its subsidiaries hold a total of 226,331 BTC, showcasing its strong belief in Bitcoin. With an average purchase price of $36,798 per Bitcoin, MicroStrategy has managed its acquisitions strategically to maximize its holdings. As the largest publicly listed corporate holder of Bitcoin, its significant holdings, funded through convertible notes, set a precedent influencing other companies going forward.