In a development that has stirred the Bitcoin market, MicroStrategy, a front-runner in the business intelligence sector, has reaffirmed its steadfast belief in Bitcoin. The firm recently unveiled its latest Bitcoin procurement, an additional 12,333 Bitcoins, sending its total Bitcoin assets to a staggering 152,333 BTC.
MicroStrategy’s Bitcoin Shopping Spree Totals $347 Million
On June 28, MicroStrategy Incorporated, led by Michael Saylor, made a riveting announcement about its most recent Bitcoin purchase. From April 29 to June 27, 2023, MicroStrategy and its subsidiaries went on a Bitcoin shopping spree, acquiring approximately 12,333 bitcoins. The firm invested about $347 million in cash for this acquisition, with an average cost of roughly $28,136 per Bitcoin, inclusive of fees and expenses.
This latest acquisition has significantly strengthened MicroStrategy’s Bitcoin portfolio. As of June 27, the firm and its subsidiaries collectively held an impressive 152,333 bitcoins. These digital assets were amassed at a total purchase price of a whopping $4.52 billion, with an average cost of approximately $29,668 per Bitcoin, including fees and expenses.
Additionally, Microstrategy disclosed a strategic financial move as it entered into a Sales Agreement with Cowen and Company, LLC, and Canaccord Genuity LLC on May 1. These entities, acting as sales agents, would oversee the issuance and sale of MicroStrategy’s class A common stock, with a par value of $0.001 per share. The agreement permits an aggregate offering price of up to $625 million, providing MicroStrategy with the flexibility to raise funds as required.
By June 28, MicroStrategy announced that it had successfully issued and sold a total of 1,079,170 Shares under the Sales Agreement as of June 27, 2023. This strategic action has yielded approximately $333.7 million in net proceeds for MicroStrategy, after deducting sales commissions and expenses.
Bitcoin Price Remains Stable Around $30K
MicroStrategy has been a pioneer in corporate Bitcoin adoption. Under the forward-thinking leadership of CEO Michael Saylor, the firm made its inaugural Bitcoin purchase in August 2020 and has been on a steady acquisition path ever since. This latest addition, valued at approximately $347 million, further solidifies MicroStrategy’s standing as one of the largest corporate Bitcoin holders.
At present, the Bitcoin price has shown little reaction to the news and has been on a downward trend. Currently, BTC is trading at $30.3K, dropping over 1.5% in the last 24 hours.
Recent advancements in Bitcoin Exchange-Traded Fund (ETF) applications have significantly bolstered MicroStrategy’s aggressive Bitcoin acquisition strategy. Top asset management firms like Blackrock and Fidelity have filed for BTC Spot ETF, sparking a bullish rally for Bitcoin and MicroStrategy’s Bitcoin acquisition.
