Michael Saylor’s MSTR Boosts BTC Holdings to 673,783 Coins, Cash Reaches $2.25B
MicroStrategy (MSTR), the leading publicly traded entity in Bitcoin holdings, has significantly boosted its cryptocurrency assets and cash reserves. Executive Chairman Michael Saylor announced that the company acquired an additional 1,287 Bitcoin for over $116 million, averaging around $90,000 per coin. This brings MicroStrategy’s total Bitcoin holdings to 673,783 coins.
Financial Overview
MicroStrategy’s Bitcoin has been purchased at a cumulative cost of $50.55 billion, which reflects an average purchase price of $75,026 per coin. In addition to increasing its Bitcoin reserves, the company has also enhanced its cash position.
Cash Reserves Surge
- The latest investment added $62 million to MicroStrategy’s cash reserves.
- This elevates the total cash reserves to $2.25 billion.
- Funds for both Bitcoin and cash increases were sourced from the sale of common stock.
The cash reserves aim to support dividend payments for the company’s perpetual preferred equity. Currently, MicroStrategy can sustain 32.5 months of dividend payments with its available cash.
Bitcoin Market Performance
Despite enhancing its holdings, MicroStrategy reported $17.44 billion in unrealized losses on its Bitcoin investments during the fourth quarter. This was anticipated due to Bitcoin’s price drop from approximately $120,000 at the beginning of October to $88,000 at year-end.
Following the announcement of these financial updates, MSTR shares rose by 4.5% in premarket trading, coinciding with a weekend upturn in Bitcoin prices, which currently sit at around $92,900.
