MicroStrategy's Bitcoin Investment Soars to Nearly $15 Billion

MicroStrategy recently announced it acquired nearly 12,000 more bitcoins between April and late June 2024, bringing its total holdings to approximately 226,331 bitcoins, valued at nearly $15 billion. In a filing with the SEC, MicroStrategy revealed it bought 11,900 bitcoins from late April to June 19 at an average price of $65,883 per bitcoin, costing roughly $780 million. This purchase highlights MicroStrategy's strong commitment to Bitcoin.

MicroStrategy now holds about 1% of all bitcoin, making it the largest publicly listed corporate holder of the cryptocurrency. The company has invested around $8.33 billion to accumulate its bitcoin stash, averaging an acquisition cost of $36,798 per bitcoin. The latest purchases were funded through a senior notes convertible offering. Initially targeting $500 million, MicroStrategy increased the amount to $700 million due to high demand and eventually raised $800 million. This method of raising funds through convertible notes to buy Bitcoin has been a consistent strategy.

CEO Michael Saylor has been a strong advocate of Bitcoin, viewing it as a hedge against inflation and a store of value. This belief has driven the company's continuous investments in cryptocurrency throughout the year. MicroStrategy's stock has surged by over 345% in the past year despite a recent decline of about 8% in the past week. The stock's volatility is partly due to the fluctuating cryptocurrency market and the company's heavy reliance on Bitcoin.

MicroStrategy's strategy has inspired other companies to adopt similar Bitcoin treasury strategies. In the US, companies like DeFi Technologies and Semler Scientific have incorporated Bitcoin into their financial strategies. In Japan, Metaplanet has also started buying more Bitcoin in recent months. MicroStrategy's dedication to Bitcoin is clear in its continuous purchases and strategic funding methods. By holding a large portion of its assets in Bitcoin, the company aims to benefit from the cryptocurrency's potential future appreciation.

As of June 20, 2024, MicroStrategy and its subsidiaries hold a total of 226,331 bitcoins. This achievement highlights the company's belief in Bitcoin's potential. With an average purchase price of $36,798 per bitcoin, MicroStrategy has managed its acquisitions strategically to maximize its holdings.

In summary, MicroStrategy's recent Bitcoin purchases and overall strategy demonstrate a strong commitment to the cryptocurrency. The company's significant Bitcoin holdings, funded through convertible note offerings, have positioned it as the largest publicly listed corporate holder of Bitcoin, influencing other companies and showcasing the growing acceptance of Bitcoin as a valuable asset.