MicroStrategy, the prominent business intelligence firm listed by Nasdaq, has seen a significant spike in Bitcoin holdings. The strategic Bitcoin investment of the company has positioned it as the biggest corporate platform holding digital assets as it now owns 189,150 BTC. The respective assets currently have a value of up to $8.55B.
MicroStrategy Occupies the Top Position among the Corporate Firms Holding BTC
MicroStrategy began investing in Bitcoin in August 2020 when the cryptocurrency was trading above $10,000. The company initially purchased 21,454 BTC, marking its entry into the crypto space. Since then, MicroStrategy has consistently expanded its Bitcoin holdings.
The firm’s average cost per BTC token is now $31,165, and recent reports indicate an additional investment of 14,620 BTC, costing approximately $615.7M. This brings the new average cost per token to around $42,110. MicroStrategy’s total Bitcoin investment represents about 0.9% of the cumulative Bitcoin supply.
Michael Saylor Reportedly Possesses Huge BTC Holdings
MicroStrategy CEO Michael Saylor, an active participant in the crypto market, owns over 17,000 Bitcoin tokens. After a $216M sale of company options, he plans to increase his BTC holdings, showing confidence in the crypto market’s future.
Saylor, a prominent Bitcoin supporter, links the recent rally in Bitcoin’s value to changes in the world of capital. He emphasizes the growing adoption of digital assets as a store of value and a hedge against inflation.
MicroStrategy’s financing approach for Bitcoin acquisitions, involving share issuance, has drawn attention. This method raises capital but dilutes existing shareholders’ ownership. The company aims to use funds for more Bitcoin acquisitions. Blockstream CEO Adam Back has also commented on this strategy.
The Firm Raises BTC Holdings in Line with Its Financing Approach
According to him, MicroStrategy’s Bitcoin per share ratio surged, benefiting shareholders. This led to a 1.4% increase in BTC per share. Initially, the firm owned 174,530 Bitcoin with 15.64M shares. It later issued 1.077M additional shares, raising $610M. This move proved advantageous for the firm.
Subsequently, MicroStrategy used the new shares to acquire more Bitcoin, totalling $617M. This development favoured the firm, raising the BTC per share ratio to 0.011313 from 0.011159.
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