MicroStrategy has acquired an additional 11,931 BTC for ~$786.0M using proceeds from convertible notes & excess cash for ~$65,883 per #bitcoin. As of 6/20/24, $MSTR hodls 226,331 $BTC acquired for ~$8.33B at average price of $36,798 per bitcoin.https://t.co/jE9dGqqnON
On June 20, MicroStrategy announced its latest investment in the Bitcoin market. This move pushes the company’s total BTC holdings to an impressive 226,331 BTC, solidifying its position as the world’s largest corporate holder of Bitcoin.
This sum is worth approximately $786 million at current prices. To put this in perspective, MicroStrategy now owns nearly 1.1% of the total Bitcoin supply, solidifying its position as one of the largest corporate holders of Bitcoin.
Working the Numbers
As of the end of April, MicroStrategy held 214,400 BTC. This latest purchase brings their total holdings to 226,331 BTC. At Bitcoin’s current price of approximately $66,000, at press time, these holdings are worth just shy of $15 billion.
The company secured these BTCs at an average price of $36,798 each, roughly $8.33 billion.
This purchase wasn’t a spur-of-the-moment decision. It was made possible through a strategic move earlier in the year when MicroStrategy issued an $800 million convertible note—a type of debt security that can be converted into a pre-determined amount of the issuing company’s equity. Initially planned for $500 million, the offering size was increased to $700 million and ultimately closed at $800 million. This fundraising effort provided the capital necessary for the massive Bitcoin acquisition and further showcases the company’s continued commitment to Bitcoin as a treasury asset.
Michael Saylor’s Vision
Led by Executive Chairman Michael Saylor, MicroStrategy, since August 2020, embarked on its Bitcoin accumulation, converting significant portions of its balance sheet into cryptocurrency. Saylor’s vision extends beyond his company; he aims to spearhead a broader movement encouraging other corporations to adopt BTC as part of their treasury management. He believes Bitcoin is the ultimate hedge against inflation and a superior store of value compared to traditional fiat currencies.
Saylor’s bullish stance was made clear in a recent interview where he stated, “Bitcoin is the apex property of the human race. It’s better than gold, it’s better than everything that came before it. And we are selling the top of the fiat pyramid to buy the bottom of the crypto pyramid.”
While some companies have cautiously added modest amounts of Bitcoin to their balance sheets, MicroStrategy’s bold approach stands out. A stack example is the U.S.-listed Semler Scientific (SMLR), which added BTC to its treasury assets in late May and aimed to tap capital markets for substantial purchases. This saw their shares rise by over 60% since disclosing their BTC acquisitions.
Market Reactions
Currently, up by 2%premarket to $1,507, MicroStrategy’s (MSTR) shares have surged approximately ten-fold since their initial BTC purchases four years ago. Bernstein, a brokerage firm, recently initiated coverage of MicroStrategy, setting a bullish $2,890 price target for the company’s shares.
MicroStrategy, a NASDAQ-listed software firm, has announced the acquisition of an additional 11,931 Bitcoin (BTC) for $786 million, increasing its total holdings to 226,331 BTC. This move reaffirms Executive Chairman Michael Saylor’s strong belief in Bitcoin’s future and positions the company as the world’s largest corporate holder of BTC. The average acquisition price was around $36,798 per Bitcoin, totaling roughly $8.33 billion in value. This strategic purchase was facilitated by an $800 million convertible note issued earlier in the year. Saylor aims to lead a broader adoption of Bitcoin among corporations, viewing it as a superior store of value and hedge against inflation. MicroStrategy’s shares have surged significantly, with market analysts setting bullish targets for its stock price.
