MicroStrategy announced a new significant Bitcoin purchase, acquiring 27,200 BTC at a value of approximately $2.03 billion. With this purchase, MicroStrategy now holds 279,420 BTC worth $24.83 billion, solidifying its position as the largest corporate holder of Bitcoin.
New Major Bitcoin Purchase
MicroStrategy completed another Bitcoin purchase, acquiring 27,200 BTC at an average price of $74,463 per Bitcoin. The company's CEO, Michael Saylor, reaffirmed their commitment to using Bitcoin as a primary reserve asset, a strategy initiated in 2020 to guard against inflation and currency depreciation.
MicroStrategy's Financing Strategy
This latest acquisition was funded through company stock sales. This financing strategy allows MicroStrategy to continue accumulating Bitcoin without using debt or impacting its operational cash flow, thus keeping their finances in balance.
MicroStrategy's 21/21 Plan
Shortly before the latest purchase, MicroStrategy launched an ambitious '21/21 Plan', aiming to raise $42 billion over the next three years to further increase its Bitcoin holdings. The company plans to raise $21 billion through equity and the remaining amount through bonds issuance. CEO Michael Saylor and President Phong Le believe that the additional capital will serve as a vital asset in reinforcing the company's position within the cryptocurrency space.
With the latest Bitcoin purchase, MicroStrategy continues to strengthen its position in the cryptocurrency world. The company's strategy of accumulating Bitcoin and financing through stock sales allows it to bolster reserve assets without financial strain, marking it a major player in the crypto industry.
