December 1, 2023

MicroStrategy Expands Bitcoin Holdings with $593 Million Acquisition

MicroStrategy's bitcoin portfolio surpasses $5 billion following the recent purchase, and may raise up to $750 million in new stock sale.

MicroStrategy, a prominent business intelligence firm, disclosed its latest move in the cryptocurrency space by acquiring an additional 16,130 bitcoins at a cost of approximately $593.3 million. This brings MicroStrategy's total bitcoin holdings to 174,530, acquired for a cumulative sum of $5.28 billion, with an average acquisition price slightly exceeding $30,000 per bitcoin.

Michael Saylor, the founder and Executive Chairman of MicroStrategy, shared the news via X, revealing that the company secured these bitcoins at an average price of $36,785 each during this recent acquisition phase.

Following this substantial purchase, the total value of MicroStrategy's bitcoin holdings now represents more than 70% of the company's overall stock market valuation, which currently stands at $7.3 billion.

MicroStrategy's bitcoin treasury is notably over 12 times larger than that of its closest institutional counterpart, Marathon Digital, a Bitcoin miner holding 13,726 bitcoins valued at $517 million at current market prices.

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Since its initial major bitcoin acquisition in August 2020, MicroStrategy has consistently bolstered its cryptocurrency holdings, demonstrating resilience amid the volatile price movements in the digital asset market.

The company said it may again raise up to $750 million through the sale of new Class A common stock shares. 

According to Saylor, bitcoin plays a crucial role as a reserve asset for MicroStrategy, providing a hedge against inflationary pressures for the enterprise software company.

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