This company bought $821.70 million worth of Bitcoin.
According to Michael Saylor, Executive Chairman and Head of Bitcoin Strategy, MicroStrategy has strengthened its Bitcoin holdings by acquiring 12,000 BTC for $821.7 million.
With this latest purchase, as of March 10, 2024, MicroStrategy now holds 205,000 BTC.
Microstrategy's $6.91 billion Bitcoin investment
The purchase, using proceeds from the convertible notes and excess cash, translates to about $68,477 per BTC. In this latest acquisition, the As of March 10, 2024, MicroStrategy now holds 205,000 BTC, with roughly $6.91 billion earned at an average of $33,706 per BTC.
The company previously bought 3,000 BTC, bringing MicroStrategy's bitcoin holdings to over $10 billion. The move comes as the company, whose core product is business intelligence software, bets on Bitcoin's dominance over other assets.
“Bitcoin competes with gold, which is 10x. What it is now, it's competing with the S&P index, it's competing with real estate, $100 trillion and the asset class as a store of value. We believe that capital will continue to flow from those asset classes into bitcoin because bitcoin is technically superior to those asset classes,” Salor said.
Read more: Who will have the most Bitcoins in 2024?
Microstrategy's journey began in August 2020 when it announced its first major investment in Bitcoin, approximately 21,454 BTC, worth over $250 million. Since then, it has amassed the largest corporate holdings of Bitcoin globally.
For some time, some investors have viewed MicroStrategy stock as a proxy for Bitcoin. However, the approval of Bitcoin exchange-traded funds in January offered an alternative. Investors are choosing to gain exposure to Bitcoin through these ETFs through tax-advantaged retirement and brokerage accounts.
Demand for BlackRock's IBIT Bitcoin Strategy ETF is surging, with assets under management hitting $10 billion last week.
Microstrategy has previously made the case for Bitcoin ETFs as a superior option. It has been argued that since MicroStrategy is an operating company, investors in MSTR stock control the company's capital structure. This privilege differs from that of a spot ETF issuer, a trust company.
Unlike Bitcoin ETF issuers, MicroStrategy charges shareholders no management fees and the company can create and generate new cash flow.
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