Strategy Executes Second-Smallest Bitcoin Purchase Since November
MicroStrategy’s Recent bitcoin Acquisition: A $26 Million Investment
Overview of Recent Purchases
In the past week, MicroStrategy has invested $26 million in bitcoin, marking its second-lowest weekly acquisition since the company, led by Michael Saylor, intensified its cryptocurrency buying spree over six months ago.
Details of the Acquisition
From June 16 to June 22, the firm acquired 245 bitcoin at an average price of $105,856 each, as disclosed in a filing with the U.S. Securities and Exchange Commission. This recent purchase is the smallest since the company bought 130 bitcoin during the week ending March 17. Currently, MicroStrategy’s bitcoin holdings are valued at approximately $60 billion.
Funding Strategy and Market Reactions
This marks the fourth consecutive week that MicroStrategy has financed its bitcoin acquisitions without liquidating any of its common stock. Critics, including short-seller Jim Chanos, have expressed concerns regarding the significant premium of the company’s stock compared to the value of its cryptocurrency assets.
Financial Performance and Stock Movement
The latest bitcoin purchases were funded through the net proceeds from the sale of the company’s Strike preferred stock (STRK) and Strife preferred stock (STRF). Michael Saylor, a co-founder and executive chairman of MicroStrategy, continues to lead the company’s strategic direction.
Since MicroStrategy began its bitcoin investment journey in mid-2020, its shares have skyrocketed over 3,000%, while bitcoin itself has appreciated around 1,000% during the same timeframe. As of Monday, the stock price remained stable at approximately $368.35.
Conclusion
MicroStrategy’s ongoing commitment to bitcoin acquisition reflects its long-term strategy in the cryptocurrency market, despite skepticism from some investors. The company’s significant investments continue to draw attention as it navigates the evolving landscape of digital assets.
