MicroStrategy, recognized as the largest institutional holder of Bitcoin, has further consolidated its bet on the world’s largest cryptocurrency. The company announced on Thursday (30) the purchase of an additional 16,000 bitcoins, bringing its total supply to approximately 174,530 bitcoins.
The new purchase of bitcoins, announced by Michael Saylor, the company’s founder, took place at an average price of $36,785 per bitcoin, meaning MicroStrategy spent $593.3 million on the acquisition.
The total value of MicroStrategy’s more than 174,000 bitcoins is therefore now worth approximately $6.5 billion, reflecting a significant 20% return on the initial investment. This move underlines the company’s continued confidence in cryptocurrency as a valuable and strategic asset.
MicroStrategy acquired another 16,130 BTC for ~$593.3 million at an average price of $36,785 per #bitcoin. From 29/11/23, @MicroStrategy now 174,530 $BTC purchased for ~$5.28 billion at an average price of $30,252 per bitcoin. $MSTR https://t.co/hSEZyzGBsr
— Michael Saylor⚡️ (@saylor) November 30, 2023
Bitcoin Strategy
MicroStrategy started accumulating Bitcoin in August 2020, making an initial investment of $250 million in the digital currency. Since then, it has consistently increased its holdings, creating a reserve strategy that has amassed more than 174,530 bitcoins worth more than $6.59 billion.
In addition to strengthening its position in Bitcoin, MicroStrategy also wants to expand its financial capabilities.
The company announced a partnership with renowned financial institutions, including Cowen and Company, Canaccord Genuity and BTIG, to raise $750 million through the issuance of new shares.
“On November 30, 2023, MicroStrategy announced that during the period between November 1, 2023 and November 29, 2023, MicroStrategy, together with its subsidiaries, acquired approximately 16,130 bitcoins for approximately $593.3 million in cash, at an average price of approximately $36,785 per share . bitcoin, including fees and costs.”said MicroStrategy.
“As of November 29, 2023, MicroStrategy, together with its subsidiaries, owned a total of approximately 174,530 bitcoins, which were purchased at an aggregate purchase price of approximately $5.280 billion and an average purchase price of approximately $30,252 per bitcoin, including fees and expenses. .”
Although not explicitly stated, it is speculated that some of these newly raised funds could be used for future bitcoin purchases or other business initiatives.
Notably, Bitcoin’s positive performance in 2023 had a direct impact on Microstrategy’s shares, which witnessed a significant increase in value, closely tied to Bitcoin’s continued upward momentum.
On November 9, when Bitcoin reached its highest price of the year at $38,000, MSTR’s stock price also rose to an all-time high of $533 per share.
This milestone further proves the company’s successful investment strategy over the past three years.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
