MicroStrategy Buys 11,931 BTC for $786 Million in Latest Crypto Investment

The biggest corporate owner of Bitcoin (BTC), MicroStrategy (MSTR), a software company listed on the Nasdaq, has added another substantial cryptocurrency stake. A press release issued Thursday morning stated that the corporation paid $786 million to purchase 11,931 Bitcoin. With this acquisition, MicroStrategy now possesses 226,331 Bitcoin tokens in total, worth little less than $15 billion at the current price of around $66,000.

The $800 million convertible note issuance to institutional investors was preceded by this most recent transaction. The sale was initially scheduled to generate $500 million, but it ultimately concluded at $800 million after raising $700 million. Through a similar loan issue, the corporation added 9,245 BTC for $623 million in March.

Led by Executive Chairman Michael Saylor, MicroStrategy has been accumulating Bitcoin since 2020. Saylor’s strategy aims to spearhead the adoption of BTC as a reserve asset for corporate treasuries. The company’s Bitcoins were purchased at an average price of $36,798 each, totaling roughly $8.33 billion.

Influencing the Market and Corporate Strategy

Saylor’s vision has inspired a handful of companies to add modest amounts of Bitcoin to their balance sheets. Notably, U.S.-listed Semler Scientific (SMLR) has recently made sizable Bitcoin acquisitions and is raising capital to purchase even more.

MicroStrategy shares have surged roughly tenfold since the firm began its Bitcoin purchases. Similarly, Semler Scientific’s shares have increased by over 60% since its initial Bitcoin buys in late May. Last week, brokerage firm Bernstein initiated coverage of MicroStrategy, setting a $2,890 price target for the company’s shares with an outperform rating. Currently, MicroStrategy shares are up 2% premarket to $1,507.

This strategic move underscores MicroStrategy’s confidence in Bitcoin’s long-term value and its commitment to integrating Bitcoin into its corporate strategy. By leveraging debt offerings to fund these acquisitions, MicroStrategy aims to maximize its Bitcoin holdings and capitalize on the growing acceptance of cryptocurrency in the global financial system.

Michael Saylor’s initiative continues to influence market dynamics and inspire other firms to consider Bitcoin as a pivotal element of their corporate strategies. With this latest acquisition, MicroStrategy solidifies its position as a leading corporate Bitcoin holder.