MicroStrategy’s Recent Bitcoin Purchase and Investment Strategy

MicroStrategy’s Latest Bitcoin Purchase

Nasdaq-listed software firm MicroStrategy (MSTR), known for being the largest corporate holder of bitcoin (BTC), has recently acquired an additional 11,931 BTC for $786 million. This move was revealed in a press release on Thursday morning.

Company’s Bitcoin Holdings

With this recent purchase, MicroStrategy now holds a total of 226,331 bitcoins, valued at just under $15 billion based on the current price of approximately $66,000 per token. The company initially held 214,400 bitcoins as of the end of April.

MicroStrategy’s Bitcoin Investment Strategy

MicroStrategy, led by Executive Chairman Michael Saylor, began accumulating bitcoin in 2020 and has been advocating for other corporate treasuries to consider adopting BTC as a reserve asset. The company’s bitcoins were purchased at an average price of $36,798 each, totaling approximately $8.33 billion.

MicroStrategy has been actively raising funds through convertible note offerings to acquire more bitcoins. In March, the company added 9,245 BTC for $623 million following a similar debt issuance.

Notably, the company’s stock price has surged significantly since it started investing in bitcoin, with shares rising around ten-fold over the past four years.

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, MSTR is up 2% premarket to $1,507.