MicroStrategy disclosed that it bought 12,333 bitcoins for $347 million in cash between April and June. The company now holds 152,333 bitcoins worth over $4.5 billion.
MicroStrategy, a business intelligence company that has become one of the biggest corporate investors in Bitcoin, has added more of the cryptocurrency to its balance sheet.
The company announced that it bought 12,333 bitcoins for approximately $347 million in cash between April 29 and June 27. The average price per bitcoin, including fees and expenses, was about $28,136.
As of June 27, MicroStrategy and its subsidiaries collectively held 152,333 bitcoins. These were acquired at an aggregate purchase price of approximately $4.52 billion, with an average purchase price of approximately $29,668 per bitcoin, including fees and expenses.
MicroStrategy’s CEO and co-founder, Michael Saylor, revealed the purchase on Twitter and shared a link to the company’s filing with the U.S. Securities and Exchange Commission (SEC).
MicroStrategy’s Bitcoin Strategy
MicroStrategy is a software company that provides businesses with data and intelligence software. In August 2020, it began buying large quantities of bitcoin.
As of December 2022, it holds approximately 132,500 bitcoins purchased at an aggregate price of approximately $4.03 billion or an average of $30,397 per bitcoin.
MicroStrategy has incurred $2.36 billion in debt to buy bitcoins, using over $300 million in cash on its balance sheet in June 2020 and the free cash flow it has generated since then.
The company’s cost basis was roughly $30,700 per bitcoin as of March 31, 2022. As of December 2022, no publicly listed companies had as much bitcoin as MicroStrategy.
However, for tax reasons, the company sold some of its bitcoin holdings in December 2022.
The price of bitcoin fell sharply in 2022, and there were concerns that MicroStrategy may be subject to a “margin call.” However, the company has maintained its bullish stance on the cryptocurrency and continued to buy more at lower prices.
Saylor has emerged as one of the most vocal advocates of Bitcoin in the corporate world. He believes Bitcoin is a superior store of value and a hedge against inflation and currency devaluation.
He has also encouraged other companies to adopt Bitcoin as part of their treasury strategy.
MicroStrategy’s latest acquisition comes amid a recovery in the crypto market after a prolonged slump. Bitcoin recently surpassed the $30,000 threshold for the first time since June, when it fell below it several times.
The market also anticipates the SEC’s approval of a spot bitcoin ETF, which could boost institutional demand for the asset.
MicroStrategy is one of the most prominent examples of how companies can leverage bitcoin to improve their value proposition and diversify their portfolio.
Investors are advised to do their own research and due diligence before investing in any Crypto platform or Asset.
