The decision to purchase more Bitcoin demonstrates MicroStrategy’s belief in the long-term viability and value proposition of the leading cryptocurrency.
MicroStrategy Inc (NASDAQ: MSTR) led by its Chairman, Michael Saylor has once again made headlines by announcing its acquisition of an additional 5,445 Bitcoin (BTC) for approximately $147.3 million, averaging around $27,053 per token.
The specifics of this acquisition were revealed in a Form 8-K filing with the United States Securities and Exchange Commission (SEC). MicroStrategy and its subsidiaries finalized this transaction between August 1 and September 24, 2023, according to the filing.
What makes this announcement even more appealing is the cumulative effect it has on MicroStrategy’s Bitcoin holdings. As of September 24, 2023, the corporation and its subsidiaries possessed a startling total of nearly 158,245 BTC. These BTCs were acquired at an average purchase price of roughly $29,582 per coin, which includes fees and expenses. In total, MicroStrategy’s investment in Bitcoin now amounts to an impressive $4.68 billion.
The decision to purchase more Bitcoin demonstrates MicroStrategy’s belief in the long-term viability and value proposition of the leading cryptocurrency. It also showcases its confidence in the potential for BTC to outperform traditional investment assets, such as stocks, bonds, or real estate, in the years to come.
MicroStrategy’s persistent accumulation of Bitcoin is also notable for its influence on the broader crypto market. The company’s high-profile Bitcoin purchases have garnered significant attention from institutional investors and corporations, sparking interest in using Bitcoin as a treasury reserve asset.
MicroStrategy Inc’s Bitcoin Bet amidst Market Volatility
MicroStrategy’s recent BTC purchase has garnered significant attention, coming at a time when the crypto market has experienced some notable price fluctuations.
Over the past few weeks, Bitcoin has exhibited relatively subdued price movements. After briefly touching $28,000 on August 29, the cryptocurrency saw a decline, dropping to as low as $25,000 on September 11. As of the time of writing, BTC is trading at $26,281, reflecting a 0.5% decrease in the past 24 hours, according to CoinMarketCap data.
In light of this price action, MicroStrategy’s decision to acquire more Bitcoin at an average price of $27,053 per BTC stands out. This move showcases its long-term perspective with a willingness to accumulate the digital asset even when short-term volatility appears to be in play.
It’s worth noting that this is not the first time MicroStrategy has demonstrated its commitment to Bitcoin. In June, the company made headlines by purchasing over 12,000 BTC valued at $350 million. This acquisition underscores a consistent buying pattern that started way back in August 2020. Today, MicroStrategy is now a model for other institutional investors as far as its Bitcoin strategy is concerned.
Beyond its Bitcoin acquisitions, MicroStrategy has also shown financial resilience in its recent quarterly reports. In the first quarter of 2023, the company reported its first profitable quarter since 2020, thanks in part to a one-time income tax benefit. This profitability continued into the next quarter, with MicroStrategy reporting $22.2 million in net income in early August.