MicroStrategy Bets $786M on 11,931 Bitcoins to Expand Holdings

As the broader cryptocurrency community awaits the actualization of bullish price predictions on Bitcoin, MicroStrategy has continued its massive acquisition run. The business intelligence firm has acquired an additional 11,931 BTC for a staggering $786 million.

Expanding MicroStrategy’s Bitcoin Holdings

According to Saylor’s post on X, MicroStrategy as of June 20, 2024 has a total BItcoin holding of 226,331 BTC, worth roughly $14.9 billion. As per the recent acquisition, the Bitcoins were purchased between April 27 and June 19, at an average price of $65,883 per Bitcoin, according to a filing with the United States Securities and Exchange Commission (SEC).

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

— Michael Saylor⚡️ (@saylor) June 20, 2024

As per the last acquisition, MicroStrategy had surpassed all countries in the world in terms of its BTC holding, outranking the closest holder country, the United States with about 7,000 BTCs. This recent addition puts a significant distance between it and any other holder.

Funding Bitcoin Purchase

The $786 million purchase was funded through convertible notes and surplus cash. Recently, MicroStrategy increased its convertible note offering by 40% with the notes expected to provide a 2.25% yearly yield for institutional investors.

Interestingly, according to the company’s founder and executive chairman, despite making the current batch of Bitcoins at approximately $65,883per BTC, the total MicroStrategy accumulations of 226,331 BTC, worth roughly $14.9 billion were bought at an average price of $36,798 per Bitcoin. That gives a sum total of around $8.33 billion, inclusive of fees and expenses.

The figures show that the aggressive Bitcoin acquisition strategy of the business intelligence firm is up approximately $6.57 billion. Analysts consider this a huge profit margin even before the anticipated bullish price movement for the world’s leading crypto.

MicroStrategy Remains Bullish on Bitcoin

Although MicroStrategy is renowned for periodic Bitcoin accumulation, market watchers speculate that Michael Saylor might be betting on prices to witness a surge soon. Notably, in a recent podcast, Saylor had stated that the recent spot Ethereum ETF approval by the SEC will benefit Bitcoin as well.

Market watchers say while other investors continue to play catch up, MicroStrategy is solidifying its position in the crypto space. In March, JPMorgan, the investment banking firm had expressed concerns over Saylor’s substantial purchases but that has not slowed down MicroStrategy.