MicroStrategy Boosts Bitcoin Holdings with $458.2M BTC Purchase, Now Holds 252,220 BTC

• MicroStrategy, a business intelligence firm and notable corporate bitcoin holder, has acquired an additional 7,420 BTC.
• The purchase, valued at approximately $458.2 million, was made at an average price of $61,750 per bitcoin between Sept. 13 and Sept. 19.
• This new acquisition brings the company’s total bitcoin holdings to 252,220 BTC, worth an estimated $15.8 billion.

MicroStrategy continues its aggressive bitcoin acquisition strategy, solidifying its position in the cryptocurrency market.

MicroStrategy’s New Acquisition of 7,420 BTC

On September 19, 2021, MicroStrategy revealed through an SEC filing that it had acquired another 7,420 bitcoins for roughly $458.2 million. This purchase was made at an average price of $61,750 per BTC, continuing the firm’s aggressive investment in cryptocurrency. As a result, MicroStrategy now holds an impressive 252,220 bitcoins, which are currently valued at approximately $15.8 billion. This significant investment reinforces the company’s commitment to bitcoin as a primary treasury reserve asset.

Strategic Use of Convertible Senior Notes

Earlier announcements on September 17 confirmed that MicroStrategy successfully completed a $1.01 billion private offering of convertible senior notes due 2028, carrying a 0.625% coupon and a 40% conversion premium. The company plans to use the proceeds from this offering to redeem its $500 million senior secured notes that are due in 2028. Expected to be finalized by September 26, this redemption will release the collateral securing the notes, including approximately 69,080 bitcoins valued at $4.4 billion. The remaining funds will be allocated towards acquiring additional bitcoin and for general corporate purposes.

Overview of Recent Bitcoin Acquisitions and Market Performance

MicroStrategy’s latest purchase closely follows its recent acquisition of 18,300 BTC for $1.1 billion between August 6 and September 12, demonstrating the company’s unwavering confidence in bitcoin’s long-term value. Despite these substantial purchases, MicroStrategy’s stock (MSTR) showed a minimal decline of 0.3% in pre-market trading on September 19, settling at $144.26. However, the stock has seen a 3.5% increase over the past month and an impressive 108.9% year-to-date growth.

Current Bitcoin Market Trends

As of the latest data available, bitcoin is trading at $62,940, reflecting a 0.5% decrease over the past 24 hours. The current trends in the cryptocurrency market highlight a period of mild volatility. Nevertheless, MicroStrategy’s continued investments underline a strategic belief in bitcoin’s potential for substantial future gains. This sustained acquisition activity signals both confidence and a long-term vision for cryptocurrency integration into corporate financial strategies.

Conclusion

MicroStrategy’s steadfast approach to increasing its bitcoin holdings demonstrates the firm’s strategic commitment to cryptocurrency as a vital component of its financial strategy. With a significant portion of funds being directed towards bitcoin acquisitions, the company is positioning itself to benefit from potential future appreciations in bitcoin value. Investors and the wider market will keenly observe how these strategic investments impact MicroStrategy’s financial performance and overall market presence.