- MicroStrategy purchased 51,780 BTC worth $4.6 billion, notably increasing its cryptocurrency reserves.
- The acquisition was financed through a sale of 13.6 million shares, raising $4.6 B over three days.
- With 331,200 BTC now held, the company leads as the largest corporate Bitcoin investor globally.
MicroStrategy has snapped up 51,780 Bitcoin for $4.6 billion as prices escalated beyond $92,400, increasing its total reserves to 331,200 BTC. The transaction, which is the organisation’s largest so far, was made at an average bid of $88,627 per coin.
The Largest Bitcoin Acquisition by MicroStrategy
This purchase raised the value of MicroStrategy’s Bitcoin deposits to around $30 billion, while its total capital currently stands at $16.5 billion. The startup has been consistently expanding its cryptocurrency reserves since its first Bitcoin acquisition in August 2020, when it adopted the token’s as a saving asset.
The business’s total average cost per Bitcoin is $49,874, showing a sharp appreciation in value as prices approach record highs. This latest purchase accounts for more than 16% of its total BTC portfolio, further solidifying its position as the largest institutional holder.
How MicroStrategy Financed the Purchase
To fund the acquisition, MicroStrategy raised $4.6 billion by selling 13.6 million shares between November 11 and 13 through agreements with financial firms like Barclays Capital and TD Securities. The funds allowed the company to execute this record-breaking purchase while retaining additional shares worth $15.3 billion for future use.
The financing aligns with its broader strategy outlined in October under the “21/21 plan,” which aims to raise $42 billion over three years. This plan focuses on acquiring more Bitcoin and integrating it into the company’s long-term financial strategies.
What This Means for Institutional Cryptocurrency Investment
The firm’s commitment to Bitcoin reflects a growing trend of technological adoption by major institutions and corporations. The company’s consistent acquisitions have made it a leader in this space, with many viewing its strategy as a potential model for others.
The involvement of well-known financial firms in facilitating their purchases further signals increasing institutional confidence in digital assets as a viable moneymaking option. However, BTC’s volatility raises important questions about the risks associated with this level of exposure to crypto.
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