Nasdaq-listed software company MicroStrategy, known for being the largest corporate holder of bitcoin (BTC), has recently acquired an additional 11,931 BTC for a whopping $786 million. This latest purchase, led by Executive Chairman Michael Saylor, has increased the company’s total bitcoin holdings to 226,331 tokens, valued at nearly $15 billion based on bitcoin’s current price of around $66,000. The average price at which the company purchased these bitcoins was $36,798 each, totaling approximately $8.33 billion.
This significant acquisition comes after MicroStrategy’s recent $800 million convertible note offering to institutional investors. Originally planned to be $500 million, the offering was increased to $700 million and eventually closed at $800 million. Back in March, the company bought 9,245 BTC for $623 million after raising funds through a similar debt issuance.
MicroStrategy and Saylor have been actively accumulating bitcoin since 2020, advocating for the adoption of BTC as a reserve asset by other corporate treasuries. While some companies have incorporated small amounts of bitcoin into their balance sheets, U.S.-listed Semler Scientific has made notable moves by adding bitcoin as a substantial treasury asset in the past three weeks. Similar to MicroStrategy, Semler is also looking to access capital markets to make significant bitcoin purchases that surpass its current market capitalization.
Since MicroStrategy began purchasing bitcoin four years ago, the company’s shares have skyrocketed by approximately ten times. On the other hand, Semler’s shares have surged by over 60% since disclosing their initial bitcoin investments at the end of May.
Recently, brokerage firm Bernstein started covering MicroStrategy and set a price target of $2,890 for the company’s shares, rating them as outperform. In premarket trading, MSTR shares are up by 2% to $1,507.
It is evident that MicroStrategy’s continued investment in bitcoin has not only significantly increased the company’s bitcoin holdings but has also led to substantial growth in its stock value. The company’s strategic approach to cryptocurrency investment has garnered attention from investors and analysts alike, positioning MicroStrategy as a key player in the evolving landscape of digital assets and corporate treasury management.