MicroStrategy Inc. has reinforced its commitment to Bitcoin with another substantial purchase, acquiring 12,000 Bitcoin for $821.7 million. This marks the enterprise-software maker’s second-largest Bitcoin acquisition since it initiated its foray into the cryptocurrency almost four years ago.
The latest addition propels MicroStrategy’s total Bitcoin holdings to approximately 205,000 tokens, surpassing a valuation of more than $14 billion. The acquisition took place from February 26 through March 10 and was funded primarily by the proceeds from the sale of $800 million in convertible notes through a private sale, successfully concluded on March 8, as per a filing with the US Securities and Exchange Commission (SEC).
Michael Saylor, Chairman and Co-founder of MicroStrategy, initially embraced Bitcoin in 2020 as a hedge against inflation and an alternative to holding cash. The company has expended over $1 billion in Bitcoin within the first three months of 2024, surpassing more than half of its total buying in the previous year. Since Saylor’s pivot into Bitcoin, MicroStrategy’s share price has experienced a remarkable revival, soaring over 1,000%. The company’s market capitalization now stands at around $25.7 billion, surpassing its previous peak in March 2000. Notably, MicroStrategy reached a settlement with the SEC in December 2000 regarding accounting fraud allegations.
The average price for the recent Bitcoin acquisition was $68,477, contributing to an overall average price of $33,706 for the entire holding, according to the SEC filing. Bitcoin achieved a record high of over $72,000 on Monday. Following this news, shares of MicroStrategy rose by 6.6% to $1,513.46 as of 9:33 a.m. in New York.
