Software firm MicroStrategy has significantly increased its Bitcoin holdings, purchasing $1.11 billion worth of the cryptocurrency between August 6 and September 12. This latest acquisition brings the company’s total Bitcoin assets to approximately $9.45 billion.
Importance of the Acquisition
The move highlights Bitcoin’s growing acceptance, spurred by the approval of spot Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission in January. This development, combined with endorsements from Wall Street and high-profile figures like Elon Musk, has propelled Bitcoin closer to mainstream acceptance.
Analysts have noted that MicroStrategy’s substantial Bitcoin purchases have not only safeguarded the company’s reserve assets but also enhanced the attractiveness of its stock, which typically tracks Bitcoin’s performance.
Context
MicroStrategy began its Bitcoin acquisition strategy in 2020 amid a slowdown in software business revenue. As the largest corporate holder of Bitcoin, the firm has consistently expanded its position. At the end of 2023, MicroStrategy held 190,000 Bitcoins and had signaled intentions to further increase its exposure.
In July, the company’s board approved a 10-for-1 stock split to enhance the stock’s accessibility to investors.
Acquisition Details
Between August 6 and September 12, MicroStrategy acquired approximately 18,300 Bitcoins at an average price of $60,408 per Bitcoin. As of September 12, 2024, the company and its subsidiaries collectively hold about 244,800 Bitcoins.
The total Bitcoin holdings are valued at approximately $9.45 billion, with an average acquisition price of $38,585 per Bitcoin, including fees and expenses.
Market Impact
MicroStrategy’s stock has more than doubled in value in 2024, while Bitcoin has risen nearly 31% year-to-date, reflecting the strong correlation between the company’s stock performance and the cryptocurrency’s market movements.
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