MicroStrategy Acquires 397 BTC, Total Holdings Exceed 641,000 Coins
MicroStrategy, a leading corporate entity in cryptocurrency, has made headlines with its recent acquisition of Bitcoin. The company purchased 397 BTC for a substantial $45.6 million, bringing its total Bitcoin holdings to an impressive 641,205 coins.
MicroStrategy’s Significant Bitcoin Holdings
As of the latest reports, MicroStrategy’s Bitcoin inventory is now valued at over $69 billion. This recent purchase took place last week, marking a notable increase in their cryptocurrency portfolio. The average price per Bitcoin during this acquisition was approximately $114,771.
Funding the Acquisition
To finance this significant investment in Bitcoin, MicroStrategy primarily utilized proceeds from the sale of common stock. In addition, the company issued minor amounts of its preferred shares to support the transaction.
Market Dynamics and Company Strategy
- Bitcoin price has recently dipped below $108,000.
- MicroStrategy indicated it would not raise additional funds through common stock sales while its enterprise value sits below 2.5 times the Bitcoin value held.
- The current market valuation of MicroStrategy’s Bitcoin holdings places its mNAV at slightly over 1x.
Given the recent downward trend in MicroStrategy’s share price, any future plans for substantial Bitcoin purchases through stock sales appear unlikely in the near term. Currently, MicroStrategy’s shares have seen a decrease of 1.7% in pre-market trading.
Looking Ahead
Despite market fluctuations, MicroStrategy remains committed to its long-term strategy in cryptocurrency. The company continues to explore global opportunities and strategies to expand its footprint in various markets.
