MicroStrategy, a software development company, has announced its recent purchase of nearly $150 million worth of bitcoin (BTC). The acquisition took place between August 1st and September 24th of this year, according to the company’s regulatory filing. This move demonstrates MicroStrategy’s continued interest and investment in the cryptocurrency market.
In its filing, MicroStrategy stated that it acquired approximately 5,445 bitcoins at an average price of around $27,053 per bitcoin, inclusive of fees and expenses. This brings the total number of bitcoins held by the company to approximately 158,245, with an aggregate purchase price of about $4.68 billion and an average purchase price of approximately $29,582 per bitcoin.
To finance this purchase, MicroStrategy disclosed that it had issued and sold a total of 403,362 MSTR shares. The company had previously announced in August that it would potentially raise up to $750 million by selling more stock. The funds from these share sales were then used to buy additional bitcoins.
MicroStrategy’s decision to invest a significant amount of money into bitcoin reflects the growing mainstream acceptance and recognition of cryptocurrencies as a legitimate asset class. The company, led by its CEO Michael Saylor, has been a proponent of bitcoin for some time.
Saylor has often highlighted the potential of bitcoin as a store of value and a hedge against inflation. Following MicroStrategy’s initial bitcoin purchase in August 2020, the company has continued to add to its holdings, gradually increasing its stake in the cryptocurrency.
The recent purchase of bitcoins further solidifies MicroStrategy’s position as one of the largest institutional holders of the digital asset. As more companies and institutions enter the cryptocurrency space, MicroStrategy’s continued investment may encourage others to follow suit.
The company’s embrace of bitcoin has also had a positive impact on its stock price. Since its initial foray into cryptocurrency investments, MicroStrategy’s stock has experienced a significant rise, reflecting investor confidence in the company’s strategy and potential for long-term returns.
MicroStrategy’s ongoing accumulation of bitcoin demonstrates its belief in the future of cryptocurrencies and their ability to provide substantial returns. As more companies explore digital assets as part of their investment portfolios, the cryptocurrency market is likely to experience further growth and mainstream acceptance.
Overall, MicroStrategy’s recent purchase of bitcoin highlights the increasing adoption and recognition of cryptocurrencies as viable investment assets. With its continued investments and strategic approach, the company is positioning itself as a key player in this emerging financial landscape.