Nasdaq-listed business intelligence firm Microstrategy (MSTR) has made another major Bitcoin acquisition, purchasing an additional 29,646 bitcoins for approximately $650 million at an average price of $21,925 per coin. The company now holds a total of 70,470 bitcoins, acquired for an aggregate cost of $1.125 billion (average price $15,964), with a current market value exceeding $1.6 billion.
Microstrategy first began allocating significant portions of its treasury to Bitcoin in August 2020, using Coinbase Prime's institutional platform. After exhausting its own cash reserves, the company raised additional funds through a $650 million convertible senior notes offering specifically to purchase more Bitcoin. This aggressive strategy led Citigroup to downgrade Microstrategy's stock, but CEO Michael Saylor remains unwavering in his conviction that Bitcoin is a superior store of value.
Saylor Calls on Musk to Follow Suit
Michael Saylor, now a prominent Bitcoin advocate, took to Twitter over the weekend to urge Tesla CEO Elon Musk to convert Tesla's corporate balance sheet from U.S. dollars to Bitcoin. "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 tweeted. He later offered to share his playbook with Musk privately.
"The acquisition of additional bitcoins reaffirms our belief that Bitcoin, as the world's most widely-adopted cryptocurrency, is a dependable store of value," Saylor stated in the press release.
Microstrategy CFO Phong Le added: "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."
Market Implications
Microstrategy's relentless Bitcoin accumulation has made it one of the largest publicly traded corporate holders of the cryptocurrency. The company now holds over $1.6 billion worth of Bitcoin, representing a substantial portion of its market capitalization. This move has drawn both praise for its forward-thinking treasury management and criticism for exposing shareholders to extreme volatility.
Since August, Microstrategy's Bitcoin purchases have averaged $15,964 per coin, meaning its latest buy at $21,925 is significantly above its cost basis. The company's strategy has effectively turned its stock into a proxy for Bitcoin exposure, attracting crypto-focused investors while alienating some traditional value investors.
Microstrategy's continued accumulation could encourage other publicly traded companies to consider Bitcoin as a treasury asset, especially if the price continues to appreciate. However, the volatility and regulatory uncertainty remain significant hurdles for broader corporate adoption.