MicroStrategy Buys 2,530 Bitcoin, Holdings Reach 450,000 BTC


MicroStrategy  has announced another significant Bitcoin acquisition. The company purchased 2,530 Bitcoin (BTC) for $243 million, bringing its total Bitcoin holdings to 450,000 BTC.

This marks the tenth consecutive week of purchases under its “21/21 Plan,” with the latest buy executed at an average price of $95,972 per Bitcoin.

The Virginia-based firm has become the largest corporate Bitcoin holder, spending approximately $28 billion to accumulate its holdings.

The average purchase price across all acquisitions stands at $62,691 per Bitcoin. MicroStrategy’s consistent acquisitions underscore its long-term commitment to Bitcoin as a key part of its corporate strategy.

Funding the Latest Bitcoin Acquisition

MicroStrategy made the recent Bitcoin purchase from the sale of 710,425 shares between January 6 and January 13.

In a recent SEC filing, the company said it has 6.5 billion shares of stock to sell or issue in the future. This strategy enables MicroStrategy to come up with capital while still pursuing the acquisition of more Bitcoin aggressively.

– Advertisement –

The company also announced that it earned 0.32 percent Bitcoin yield from January 1 to January 13. The Bitcoin yield captures the rate at which one’s Bitcoin holdings are increasing for every share that is owned. This metric is a measure of the company’s potential to expand its cryptocurrency assets without a proportional, negative impact on shareholder value.

The company has purchased 450,000 bitcoins as of January 13, with a value of about $40.8 billion at today’s rates.

This buying spree is happening at a time that has been rather unkind to Bitcoin, with the price of the digital currency going down by a little under 9% in the last seven days. At the time of writing, one bitcoin was trading at around $90,500, after a sharp fall from its previous highs.

Rising price of Bitcoin, however, has not deterred MicroStrategy from its strategy as the company claimed that the asset holds long term value. This has been due to the company’s constant purchase of cryptocurrencies which has made it a well-known player in the Cryptocurrency market, with focus on the company’s strategic approach.

Possible Implications on the Cryptocurrency Market

MicroStrategy’s disclosure comes as the cryptocurrency market remains volatile due to macroeconomic factors and Bitcoin price fluctuations. The Federal Reserve is likely to continue its policy of keeping interest rates unchanged which has a negative impact on the digital asset markets.

Other corporations are also buying more Bitcoins, apart from MicroStrategy. For example, Semler Scientific has purchased 237 BTC at an average rate of $23.3 million. It will raise Semler’s total holdings of Bitcoin to 2,321 BTC equivalent to $191.9 million.

MicroStrategy’s way of adding more bitcoins remains one of the most audacious and strategic especially now that the price of Bitcoin is on a dip.

Through share issuances and cryptocurrency buys, the company has become the largest public company holder of Bitcoin. It is still uncertain how the current volatile market conditions will affect the company’s strategy, however the frequent purchases reflect that MicroStrategy is bullish on Bitcoin’s future.





Source link