MicroStrategy sells shares to buy 3,000 Bitcoin for $155 million

MicroStrategy sells shares to buy 3,000 Bitcoin for $155 million

MicroStrategy has continued to increase its Bitcoin (BTC) holdings, recently announcing the purchase of 3,000 additional BTC for more than $155 million recovered from share sales.

Michael Saylor, a prominent Bitcoin bull and executive chairman at MicroStrategy, recently highlighted the development in a post on X. Saylor shared a Form 8-K filed by MicroStrategy with the US Securities and Exchange Commission today, detailing the circumstances surrounding the acquisition.

According to the filing, MicroStrategy acquired the Bitcoin tokens between February 15 and February 25 at an average price of $51,813 per BTC. This brings the total purchase amount for the 3,000 tokens to $155,439,000 ($155.44 million).

According to MicroStrategy, the funds used for the purchase came from the sale of its shares and excess cash from last year’s operations.

Overall, MicroStrategy’s Bitcoin holdings have risen to 193,000 BTC tokens

Given Bitcoin’s current price of $51,427, the recently acquired tokens are now worth $154.2 million, representing a $1.157 million short-term unrealized loss.

Overall, MicroStrategy’s Bitcoin holdings have risen to 193,000 BTC tokens. The firm stated in the filing that it purchased these tokens for an average of $31,544 per BTC. This brings the total cost of its Bitcoin holdings to $6.09 billion.

MicroStrategy has made a massive $3.83 billion profit on its Bitcoin bet so far

Impressively, these tokens are now valued at $9,925,424,510 ($9.925 billion) at current rates, implying that MicroStrategy has made a massive $3.83 billion profit on its Bitcoin bet.

The latest purchase disclosure comes less than a week after Michael Saylor confirmed that MicroStrategy will continue to buy Bitcoin indefinitely.

While speaking with Bloomberg last week, the dedicated Bitcoin proponent emphasized that he will continue to buy at the top, as BTC is the “exit strategy.”

While some expressed concern that the emergence of spot Bitcoin ETFs would make it more difficult for MicroStrategy to continue acquiring more BTC, Saylor dismissed these concerns, expressing optimism about the products. In April 2022, during the bear market, Saylor stated that he would not stop buying BTC.

The latest development is MicroStrategy’s second disclosure of a BTC purchase this year. The company began buying Bitcoin in August 2020, with an initial purchase of 21,454 BTC for $250 million. Since then it has continued to increase its stash, making it one of the largest BTC holders.

Exit mobile version