Nasdaq-listed software firm MicroStrategy (MSTR), the largest corporate holder of Bitcoin (BTC), has announced the acquisition of an additional 11,931 BTC for $786 million. This purchase was revealed in a press release on Thursday morning.
MicroStrategy’s Bitcoin Holdings
Under the leadership of Executive Chairman Michael Saylor, MicroStrategy held 214,400 bitcoins as of the end of April. With this latest acquisition, the company’s total holdings have increased to 226,331 BTC, worth just under $15 billion at Bitcoin’s current price of approximately $66,000. The company’s bitcoins were acquired at an average price of $36,798 each, totaling roughly $8.33 billion.
Funding and Recent Purchases
This recent purchase followed the company’s $800 million convertible note offering to institutional investors. The offering size initially targeted $500 million, which was later increased to $700 million, and finally closed at $800 million. In March, MicroStrategy added 9,245 BTC for $623 million after raising funds through a similar debt issuance.
Also Read: MicroStrategy Increases Stock Sale to $700M for Bitcoin Purchases
Bitcoin Accumulation Strategy
Since beginning its Bitcoin accumulation in 2020, MicroStrategy has attempted to spearhead a movement encouraging other corporate treasuries to adopt BTC as a reserve asset. While a few companies have added modest amounts of Bitcoin to their balance sheets, one notable example is U.S.-listed Semler Scientific (SMLR). Over the past three weeks, Semler has not only added Bitcoin as a significant treasury asset but is also attempting to tap capital markets to purchase Bitcoin in amounts larger than its current market cap might suggest.
Market Performance
MicroStrategy’s shares have increased approximately ten-fold since the company began its Bitcoin purchases four years ago. Similarly, Semler’s shares have risen by more than 60% since disclosing its initial Bitcoin buys in late May.
Last week, brokerage firm Bernstein initiated coverage of MicroStrategy, setting a $2,890 price target for the company’s shares with an outperform rating. As of the latest update, MSTR is up 2% premarket, trading at $1,507.
