MicroStrategy Invests $147.3M in Bitcoin, Boosting Total Holdings to $4.68B
Summary:
MicroStrategy, a significant Bitcoin investor, has acquired additional 5,445 BTC for $147.3 million at an average price of $27,053 per BTC, pushing its total holdings to approximately 158,245 bitcoins. The firm's total BTC investment has thus far cost them $4.68 billion. The company maintains a bullish stance on Bitcoin, despite recent market fluctuations.
MicroStrategy, known for its business intelligence services and considerable Bitcoin (BTC) investments, signals its bullish stance on the market with a recent large buy of the cryptocurrency. Michael Saylor, who co-founded the company and serves as its executive chairman, used platform X (previously known as Twitter) on 25th September to publicize the company's acquisition of 5,445 BTC. This chunk of Bitcoin was purchased with an average spend of $27,053 per BTC, which totaled $147.3 million in cash, according to Saylor.
In their Form 8-K submission to the U.S. Securities and Exchange Commission, MicroStrategy along with its subsidiaries indicated they procured this amount between 1st August 2023 and 24th September 2023. As of 24th September, the company with all its subsidiaries had a combined holding of close to 158,245 bitcoins. These were bought at an average rate of about $29,582 per BTC, accounting for fees and costs. Ultimately, the total cost of the entire Bitcoin holdings for MicroStrategy has risen to $4.68 billion.
Recent weeks have seen Bitcoin hovering around the $26,000 mark. Despite reaching $28,000 briefly on 29th August, it then fell to a low of $25,000 on 11th September. At this moment, Bitcoin is valued at $26,081, experiencing a slight drop of 1.9% within a span of 24 hours. CoinGecko data reveals that the digital currency's value decreased roughly 4% over the last week.
This is not MicroStrategy's first public expression of confidence in Bitcoin; in June 2023 the company bought an additional 12,333 BTC, spending $347 million at an average cost of $29,668 per BTC. A one-off income tax benefit enabled the first profitable quarter for MicroStrategy since 2020 in Q1 2023. August saw them maintain this profitability, with a net return of $22.2 million reported.
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Published At
9/25/2023 12:48:57 PM
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