MicroStrategy Incorporated has added 1,142 Bitcoin to its reserves, spending approximately $90 million on the purchase. This acquisition comes as Bitcoin’s price remains stable near $69,000. With this addition, the company’s total Bitcoin holdings have reached 714,644, valued at around $49 billion. The details were disclosed in a filing with the U.S. Securities and Exchange Commission, revealing that the Bitcoins were bought between February 1 and 8 at an average price of $78,815 each. To date, MicroStrategy has spent about $54.4 billion acquiring its Bitcoin, including fees and other costs, with an average purchase price of $76,056 per Bitcoin.
The purchase was financed through the company’s ongoing “at-the-market” equity program, under which it recently sold 616,715 Class A common shares (MSTR) for approximately $89.5 million. The program still allows MicroStrategy to issue up to $8 billion in shares. Co-founder and Executive Chairman Michael Saylor highlighted the acquisition in his customary Sunday post, drawing attention to the company’s Bitcoin tracker. Despite reporting significant losses in the recent quarter due to Bitcoin’s price decline, CEO Phong Le stated that the company remains secure regarding its debt payments. He noted that only if Bitcoin’s price fell to $8,000 and stayed there for five to six years would payment difficulties arise. Additionally, MicroStrategy announced the launch of a Bitcoin security program to collaborate with the global cyber and crypto security community.
Experts view MicroStrategy’s strategy as solidifying its position as a prominent corporate investor in Bitcoin, potentially benefiting from a future crypto market recovery. However, the company’s stock price remains sensitive to Bitcoin’s volatility, keeping investor focus on both the company’s financial health and the broader crypto market.
Source: bitcoinmagazine
