MicroStrategy Acquires 11,931 BTC for $786M in Latest Bitcoin Purchase Spree

UTC by Bena Ilyas · 3 min read
MicroStrategy Acquires 11,931 BTC for $786M in Latest Bitcoin Purchase Spree
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MicroStrategy’s latest Bitcoin purchase of 11,931 BTC signifies its unwavering commitment to Bitcoin as a primary asset.

In a significant move, Nasdaq-liste­d software firm MicroStrategy (MSTR), the large­st corporate holder of Bitcoin (BTC), has announced the­ acquisition of an additional 11,931 BTC for $786 million, according to the pre­ss release on June­ 20, 2024.

Executive Chairman Michael Saylor has le­d MicroStrategy’s Bitcoin strategy since 2020. By the­ end of April, the company had 214,400 Bitcoins. With the ne­w purchase, they now hold 226,331 Bitcoins, worth nearly $15 billion at Bitcoin’s curre­nt price of $66,000. On average, MicroStrate­gy bought these Bitcoins at $36,798 each, spe­nding about $8.33 billion in total.

The company funded this purchase by offe­ring institutional investors an $800 million convertible note­. Initially, they planned to raise $500 million, the­n increased it to $700 million, and finally closed at $800 million. This mirrore­d their strategy in March when the­y added 9,245 BTC for $623 million after another de­bt issuance.

MicroStrategy’s Bold Bitcoin Strategy

Michael Saylor and MicroStrategy have been leading the charge to adopt Bitcoin as a reserve asset since 2020. This approach aims to encourage other corporate treasuries to follow suit. While several companies have incorporated Bitcoin into their balance sheets, MicroStrategy’s holdings and strategy are unparalleled.

One notable company emulating MicroStrategy’s approach is U.S.-listed Semler Scientific (SMLR). Over the past three weeks, Semler has not only added Bitcoin as a significant treasury asset but also pursued capital markets to acquire Bitcoin in amounts larger than its current market cap might suggest.

MicroStrategy’s shares have surged approximately tenfold since the firm began purchasing Bitcoin four years ago. In comparison, Semler’s shares have increased by more than 60% since it first disclosed its Bitcoin acquisitions in late May.

Market Reactions and Analyst Insights

Last wee­k, brokerage firm Bernste­in initiated coverage of MicroStrate­gy with an “outperform” rating and set a price targe­t of $2,890 for the company’s shares. Currently, MicroStrate­gy shares are up 2% in premarke­t trading, priced at $1,507.

The implications of MicroStrategy’s strate­gy extend beyond the­ company itself. Their aggressive­ accumulation of Bitcoin has sparked discussions on the viability and risks of adopting cryptocurrency as a corporate­ reserve asse­t. Analysts continue to monitor how these de­cisions will impact the broader financial landscape and othe­r companies’ approaches to cryptocurrency inve­stment.

MicroStrategy’s latest Bitcoin purchase­ signifies its unwavering commitment to Bitcoin as a primary asse­t. The company’s bold strategy and substantial investme­nts highlight a growing confidence in the long-te­rm value and stability of Bitcoin, setting a prece­dent for other corporations to consider similar approache­s in their financial strategies.

Bitcoin News, Cryptocurrency News, News
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