MicroStrategy, a prominent business intelligence company and substantial Bitcoin investor, is displaying a confident gesture to the market with the disclosure of its latest substantial cryptocurrency acquisition.
Michael Saylor, the co-founder and executive chairman of MicroStrategy, announced on X (previously known as Twitter) on September 25 that the company has purchased an additional 5,445 BTC. This acquisition, amounting to $147.3 million in cash, was made at an average cost of $27,053 per BTC.
A Form 8-K filed with the U.S. Securities and Exchange Commission reveals that MicroStrategy and its affiliates made this acquisition between August 1 and September 24. As of September 24, the combined Bitcoin holdings of MicroStrategy and its subsidiaries amount to approximately 158,245 BTC, purchased at an average price of about $29,582 per coin, inclusive of fees and expenses. The total expenditure for MicroStrategy’s Bitcoin holdings is approximately $4.68 billion, as per the filing.
This acquisition is announced as Bitcoin’s price has been hovering around $26,000 in recent weeks. Despite reaching $28,000 on August 29, it dipped to a low of $25,000 on September 11. Currently, Bitcoin stands at $26,081, experiencing a 1.9% decrease over the last 24 hours based on data from CoinGecko, and a decline of roughly 4% over the past week.
MicroStrategy’s newest investment further solidifies its optimistic outlook on Bitcoin. Earlier in June 2023, the firm procured 12,333 BTC for $347 million, at an average price of $29,668 per coin.
Reporting its first profitable quarter since 2020 in Q1 2023, attributed to a one-time income tax benefit, MicroStrategy sustained this profitability into the next quarter, declaring a net income of $22.2 million in early August.
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