MicroStrategy Bought Another $458 Million in Bitcoin This Week

Business intelligence firm MicroStrategy (MSTR) has purchased 7,420 Bitcoin (BTC) for approximately $458.2 million, bringing the company’s total holdings to 252,220 BTC, with an average purchase price of $39,266 per coin.

With the purchase, MicroStrategy has only emphasized its status as the largest corporate treasury reserve holder of Bitcoin, with its stash of BTC now valued at $15.9 billion as of this writing.

An SEC filing on Friday also revealed that MicroStrategy raised $1.01 billion through a convertible senior note offering, with the proceeds earmarked for further Bitcoin acquisitions.

While it is not confirmed whether this specific purchase was funded directly by the $1.01 billion note, MicroStrategy’s strategy has frequently involved using both debt and internal funds to accumulate Bitcoin. Michael Saylor’s firm has steadily increased its holdings over the last four years, despite market volatility.

Just last week, the firm disclosed a purchase of 18,300 Bitcoin—about $1.1 billion worth at the time. That was the firm’s largest purchase since 2021. And then earlier this week, the firm said it planned to raise $700 million to both pay off earlier debts as well as purchase even more Bitcoin.

Saylor, the co-founder and former CEO of MicroStrategy, has been one of the most vocal proponents of Bitcoin as a corporate treasury asset.

He first made waves in 2020 when MicroStrategy became the first publicly traded company to convert a significant portion of its cash reserves into Bitcoin. Since then, Saylor has advocated for Bitcoin as a hedge against inflation and a more secure store of value compared to traditional assets like gold or cash.

Saylor has emphasized his belief in Bitcoin’s long-term potential, even in the face of market fluctuations. He noted that Bitcoin’s decentralized nature makes it a superior asset in uncertain economic conditions. According to Saylor, Bitcoin is “the apex asset,” and its ability to store value will continue to increase as institutional interest grows.

The company’s total purchases of Bitcoin now amount to nearly $9.9 billion. MicroStrategy’s stock is up about 1% on the day to a current price of about $146, pushing its year-to-date price jump to 113%.

Edited by Andrew Hayward