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MicroStrategy bolsters its Bitcoin holdings by purchasing $786 million in Bitcoin, showcasing strong confidence in the cryptocurrencyâs future.
MicroStrategy has made yet another substantial investment in Bitcoin, purchasing approximately $786 million worth of the digital currency. This significant addition to their already sizeable holdings reaffirms the firmâs belief in Bitcoinâs long-term value.
Earlier this week, MicroStrategy successfully raised $800 million via the issuance of convertible senior notes, which can be converted into company stock. After accounting for associated costs, the net amount of $786 million was utilized to buy Bitcoin. This move aligns with the companyâs previously stated intent when they issued the notes.
MicroStrategy managed to acquire approximately 11,931 Bitcoins at an average price of $65,883 per Bitcoin. This recent purchase brings the firmâs total Bitcoin holdings to an impressive 226,331 coins. Given Bitcoinâs current market price of around $65,900, the total value of these holdings is approximately $15 billion. Notably, the company accumulated these Bitcoins at an aggregate cost of $8.33 billion, which averages out to about $36,800 per coin, significantly below the current market price.
Founded by Michael Saylor, MicroStrategy is now firmly established as the largest institutional holder of Bitcoin globally. This new acquisition further extends its lead over other corporations that have invested in the cryptocurrency. The firmâs strategy reveals an unwavering commitment to Bitcoin, often linking its fortunes with the volatile digital currency market.
MicroStrategyâs focus on Bitcoin has led to a strong correlation between its stock price and Bitcoinâs performance. In June 2022, during the crypto winter, the companyâs stock plummeted 25% in a day to $152.15, exacerbated by Bitcoinâs decline and pushing MicroStrategy towards a margin call. However, 2024 has been a banner year for Bitcoin, leading to a 144% rise in MicroStrategyâs stock price, which soared to $1,469.43. The stock achieved an all-time high in March, synchronized with Bitcoinâs peak price.
As of now, Bitcoinâs price is relatively stable at $64,910. Similarly, MicroStrategyâs stock has shown little movement since the recent uptick. The marketâs steadiness reflects overall confidence in Bitcoin and, by extension, MicroStrategyâs continued strategic investments.
MicroStrategyâs recent purchase of $786 million worth of Bitcoin underscores its steadfast belief in the digital assetâs potential. The companyâs proactive acquisition approach highlights its confidence in Bitcoinâs ability to deliver long-term value. With 226,331 Bitcoins now under its belt, MicroStrategy continues to lead the way among institutional investors in the cryptocurrency space. Future market movements of both Bitcoin and MicroStrategyâs stock will be closely watched, given the strong correlation observed over recent years.
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