Nasdaq-listed business intelligence firm Microstrategy (MSTR) announced on Monday its latest major bitcoin acquisition, purchasing 29,646 bitcoins for approximately $650 million at an average price of $21,925 per coin. The purchase brings the company's total bitcoin holdings to 70,470 BTC, acquired at an aggregate cost of $1.125 billion with an average price of $15,964 per bitcoin. At current market prices, Microstrategy's bitcoin stash is valued at more than $1.6 billion.
Continued Accumulation Strategy
Microstrategy began aggressively accumulating bitcoin in August 2020, using Coinbase's institutional services, and designated the cryptocurrency as its primary treasury reserve asset. After exhausting its excess cash reserves, the company raised funds by issuing $650 million in convertible senior notes specifically to purchase more bitcoin. The move led Citigroup to downgrade Microstrategy's stock, but the company's management remains steadfast in its belief that bitcoin offers superior long-term returns compared to holding cash.
CEO Michael Saylor tweeted: "Microstrategy has purchased an additional 29,646 bitcoins for $650 million at an average price of $21,925 per bitcoin and now hodl an aggregate of 70,470 bitcoins purchased for $1.125 billion at an average price of $15,964 per bitcoin." He added: "The acquisition of additional bitcoins reaffirms our belief that bitcoin, as the world's most widely-adopted cryptocurrency, is a dependable store of value."
Convincing Elon Musk to Bet on Bitcoin
Over the weekend prior to the announcement, Saylor attempted to persuade Elon Musk to move billions of dollars of Tesla's funds into bitcoin. In a public tweet, Saylor wrote: "If you want to do your shareholders a $100 billion favor, convert the $TSLA balance sheet from USD to BTC. Other firms on the S&P 500 would follow your lead & in time it would grow to become a $1 trillion favor." Saylor offered to share his playbook with Musk offline, signaling a growing trend among corporate treasuries to consider bitcoin as a strategic asset.
Microstrategy CFO Phong Le commented: "The company continues to believe bitcoin will provide the opportunity for better returns and preserve the value of our capital over time compared to holding cash." This statement underscores the firm's conviction that bitcoin's scarcity and decentralized nature make it a superior long-term store of value, especially in an environment of unprecedented monetary expansion.
With 70,470 bitcoins now under management, Microstrategy is one of the largest publicly traded corporate holders of the cryptocurrency. The company's aggressive accumulation has inspired other firms to consider adding bitcoin to their balance sheets, potentially accelerating institutional adoption.