MicroStrategy announced a significant new Bitcoin purchase, consolidating its position as the largest corporate holder of this cryptocurrency.
Recent Bitcoin Acquisition
MicroStrategy acquired 27,200 BTC worth approximately $2.03 billion. The average purchase price was $74,463 per Bitcoin. The company now holds 279,420 BTC, making it the largest corporate holder. CEO Michael Saylor reaffirmed the company's commitment to Bitcoin as its primary reserve asset.
Financing Strategy
The latest acquisition was funded through the sale of company shares. This strategy allows MicroStrategy to increase its Bitcoin reserves without depleting its cash reserves. By selling shares, the company avoids using debt and maintains stable cash flow. Since embracing Bitcoin strategy, MicroStrategy's shares have significantly outperformed major U.S. equities.
MicroStrategy’s 21/21 Plan
A few weeks ago, MicroStrategy launched the '21/21 Plan', aiming to raise $42 billion to further increase its Bitcoin holdings. The plan includes raising $21 billion in equity and $21 billion in fixed income securities. Company executives believe the additional capital will be essential in strengthening the company's position in the cryptocurrency market.
MicroStrategy's strategy of increasing its Bitcoin holdings underscores its long-term plans for leadership in corporate crypto investments.
