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FameEX Hot Topics | MicroStrategy's Bitcoin Portfolio Grows to 158,245 BTC with Addition of 5,445 Coins

2023-09-26 16:20:16

MicroStrategy, the publicly-traded software intelligence firm, has further expanded its substantial Bitcoin holdings by acquiring an additional 5,445 BTC during the period between August 1st and September 24th. This strategic move was revealed in a filing with the U.S. Securities and Exchange Commission (SEC), highlighting MicroStrategy's steadfast commitment to digital assets. With this recent acquisition, the company now boasts a remarkable total of 158,245 BTC in its treasury.


Founder and Chairman of MicroStrategy, Michael Saylor, chose to share this significant development on the social media platform X. According to Saylor, MicroStrategy invested approximately $147.3 million in acquiring the extra 5,445 BTC, at an average price of $27,053 per Bitcoin. As of September 24, 2023, MicroStrategy's extensive Bitcoin holdings have a combined valuation of approximately $4.68 billion, with an average acquisition cost of $29,582 per Bitcoin.


In addition to these Bitcoin acquisitions, MicroStrategy disclosed another significant financial move. As of September 24th, the company had successfully issued and sold 403,362 shares of its Class A common stock. This action was carried out in accordance with a sales agreement that MicroStrategy initiated on August 1st. The sales resulted in aggregate net proceeds of approximately $145.3 million.


The sales agreement, which MicroStrategy established with Cowen and Company LLC, Canaccord LLC, and Berenberg Capital Markets LLC, was designed to issue and sell shares of the company's Class A common stock. It allows for an aggregate offering price of up to $750 million, which MicroStrategy can access "from time to time." In the original announcement of this agreement, MicroStrategy detailed its intentions for the net proceeds. These purposes encompassed further acquisitions of Bitcoin, strengthening working capital, and, contingent on market conditions, repurchasing or repaying company debt.


It's important to underscore the broader context of corporations adopting Bitcoin as a treasury asset. This trend is not limited to MicroStrategy; it has been embraced by companies worldwide. Bitcoin's current market price is $26,097, reflecting a modest 5% decline over the last seven days. However, it remains up significantly, posting a 57% increase year-to-date.


MicroStrategy's persistent and substantial Bitcoin acquisitions underscore the company's unwavering commitment to digital assets. Their approach involves holding and accumulating these assets as a long-term store of value and treasury reserve. This strategy is emblematic of a broader trend among corporations seeking to diversify their asset portfolios and safeguard against inflation in an increasingly digital-centric global economy.


Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.


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