MicroStrategy announced the acquisition of 27,200 bitcoins worth approximately $2.03 billion, making it the largest corporate holder of this cryptocurrency.
Recent Bitcoin Acquisition
Embracing Bitcoin as a primary reserve asset, MicroStrategy acquired an additional 27,200 BTC, with an average purchase price of $74,463 per bitcoin. The company's total bitcoin holdings now amount to 279,420 BTC, valued at $24.83 billion.
MicroStrategy's Financing Strategy
The latest acquisition was funded through sales of company stock, allowing MicroStrategy to buy bitcoin without incurring debt or impacting its operational cash flow. The company's shares have steadily risen since 2020, largely due to the increase in bitcoin's value and MicroStrategy's role as a significant corporate Bitcoin holder.
MicroStrategy's 21/21 Plan
Weeks before the latest acquisition, MicroStrategy launched the "21/21 Plan," aiming to raise $42 billion over the next three years. The company intends to raise $21 billion in equity and $21 billion in fixed income securities.
MicroStrategy's strategic investments in bitcoin highlight the company's confidence in the cryptocurrency as a key asset against inflation and currency depreciation.
