MicroStrategy, the largest corporate holder of bitcoin (BTC), has made another significant purchase of the cryptocurrency, adding 14,620 BTC to its holdings. The purchase, which amounted to approximately $615.7 million, was announced by the company’s Executive Chairman, Michael Saylor, via a tweet.
According to Saylor, MicroStrategy acquired the bitcoin at an average price of $42,110 per coin. This recent acquisition brings the company’s total bitcoin holdings to 189,150 BTC, which is valued at around $5.9 billion. The average price at which MicroStrategy acquired its bitcoin holdings is $31,168 per BTC.
MicroStrategy began its foray into bitcoin investment in August 2020 and has been steadily increasing its holdings since then. In the previous month, the company purchased 16,130 BTC, which was valued at approximately $608 million at the time.
In a separate filing, MicroStrategy revealed that it had raised $610.1 million through its previously announced at-the-market (ATM) shares offering. This additional funding further strengthens the company’s financial position and provides it with more flexibility for future investments.
The decision to invest heavily in bitcoin has proven to be highly profitable for MicroStrategy. As of early December, the company had accumulated around $2 billion in profit from its bitcoin holdings. This substantial gain highlights the potential of cryptocurrencies as an investment asset.
The recent surge in bitcoin’s price has contributed to MicroStrategy’s impressive financial performance. Over the past few months, the value of bitcoin has been steadily climbing, driven by optimism surrounding the potential approval of exchange-traded funds (ETFs) that hold BTC. If approved, these ETFs could attract a significant influx of investment into the cryptocurrency market.
MicroStrategy’s stock has also experienced substantial growth, closely following the rise in bitcoin’s value. Year-to-date, the company’s shares have surged by nearly 315%, while bitcoin itself has risen by 200%. This correlation between MicroStrategy’s stock performance and the price of bitcoin further solidifies the company’s position as a major player in the cryptocurrency market.
The latest bitcoin purchase by MicroStrategy demonstrates the company’s continued confidence in the long-term potential of cryptocurrencies. As more institutional investors and corporations embrace digital assets, the demand for bitcoin is expected to increase, driving its value even higher.
MicroStrategy’s strategic approach to bitcoin investment has positioned the company as a leader in the corporate adoption of cryptocurrencies. With its substantial holdings and profitable ventures, MicroStrategy is likely to remain a prominent player in the evolving landscape of digital assets.