MicroStrategy Capitalizes on Bitcoin’s Market Dip, Boosting Holdings to Over 214K BTC with bitcoin’s price falling below the $65,000 mark.
In a bold move amidst the cryptocurrency market downturn, MicroStrategy has significantly increased its Bitcoin reserves.
Despite Bitcoin’s price falling below the $65,000 mark, the business intelligence giant seized the opportunity to expand its cryptocurrency portfolio, acquiring an additional 9,245 BTC for roughly $623 million.
This purchase, conducted at an average cost of $67,382 per Bitcoin, is part of the company’s ongoing strategy to invest heavily in the digital asset.
Recent Acquisition and SEC Filing
According to recent filings with the SEC, MicroStrategy’s latest acquisition occurred between March 11th and 18th. The company utilized $592.3 million from convertible cash offerings and an additional $30.7 million of excess cash to complete the purchase.
This follows closely on the heels of their previous significant investment of 12,000 BTC earlier in March.
MicroStrategy’s aggressive investment strategy has now resulted in a total Bitcoin holding of 214,246 BTC, surpassing 1% of the total Bitcoin supply, which is limited to 21 million coins. Initially acquired at an average price of $35,160, the company’s Bitcoin assets are now valued at over $14 billion, reflecting the substantial growth in value.
Under the guidance of co-founder and former CEO Michael Saylor, MicroStrategy has maintained a steadfast commitment to Bitcoin accumulation. This strategy has positioned the company as the leading publicly traded firm in terms of Bitcoin holdings.
MicroStrategy’s approach has set a precedent for other financial institutions, including Tether, the entity behind the widely used USDT stablecoin.
Since September 2022, Tether has been strategically purchasing Bitcoin, allocating 15% of its monthly revenue to the cryptocurrency. As of January 2024, Tether holds 66,465 BTC.
