• MicroStrategy has purchased an additional 5,262 bitcoins for approximately $561 million at an average price of $106,662 per bitcoin
• This brings MicroStrategy’s total bitcoin holdings to 444,262 BTC, worth over $4 billion at current prices
• MicroStrategy’s bitcoin acquisition coincides with the company joining the Nasdaq 100 index, which could attract interest from exchange-traded funds
MicroStrategy, a leading business intelligence company, continues to deepen its investment in Bitcoin. Recently, the company made a substantial purchase of over 5,000 Bitcoins, valued at approximately $561 million. This latest acquisition brings the firm’s total Bitcoin holdings to a staggering 444,262 BTC. This strategic move comes just as MicroStrategy secures its position in the Nasdaq 100 index, potentially attracting the interest of exchange-traded funds.
MicroStrategy’s Bitcoin Acquisition Strategy
MicroStrategy’s Executive Chairman, Michael Saylor, announced that the company has acquired an additional 5,262 BTC for approximately $561 million. The Bitcoin was purchased at an average price of $106,662 per unit. As a result, MicroStrategy now holds 444,262 BTC, valued at over $40 billion. The company has spent approximately $27.7 billion on the Bitcoin it currently owns.
Plans for Further Bitcoin Acquisitions
Back in October, MicroStrategy revealed plans to raise $4.2 billion in capital to support further Bitcoin acquisitions as part of its treasury reserve strategy. As of December 15, the company had about $7.65 billion worth of shares still available for sale. This was part of the firm’s planned $2.1 billion equity offering and $2.1 billion in fixed-income securities.
MicroStrategy’s Continuous Bitcoin Purchasing Trend
For seven consecutive weeks, MicroStrategy has reported purchasing more Bitcoin. Just last week, the company bought 15,350 BTC. This steady acquisition strategy coincides with the company’s inclusion in the Nasdaq 100 index, which could likely attract large exchange-traded funds to buy the stock.
Investor Skepticism and Business Performance
Despite MicroStrategy’s aggressive Bitcoin acquisition strategy, some investors remain skeptical about the company’s premium to NAV valuation and its strategy of using equity and debt to fund Bitcoin purchases. Interestingly, the company’s software business was not profitable during the last reported quarter.
Conclusion
Despite the skepticism, MicroStrategy remains firm in its Bitcoin investment strategy, signaling confidence in the digital currency’s potential. The company’s recent inclusion in the Nasdaq 100 index and its aggressive Bitcoin acquisition approach may be part of a broader strategy to secure its position in the evolving digital economy.
