MicroStrategy, a leading enterprise software company, announced an additional acquisition of 27,200 BTC valued at $2.03 billion.
New Bitcoin Acquisition
MicroStrategy has enhanced its Bitcoin holdings by adding 27,200 BTC. With an average purchase price of $74,463 per BTC, the total holdings now amount to 279,420 BTC. The current total value of their Bitcoin is $24.83 billion, making MicroStrategy the largest corporate holder of BTC.
MicroStrategy's Financial Strategy
MicroStrategy utilizes stock sales to finance Bitcoin acquisitions, thus avoiding debt or the impact on operational cash flow. This strategy enables the company to accumulate Bitcoin without straining its finances. Since 2020, MicroStrategy's shares have steadily risen, largely due to Bitcoin's increasing value and their role as a significant corporate Bitcoin holder.
The 21/21 Plan
Before the latest acquisition, MicroStrategy launched an ambitious '21/21 Plan,' aiming to raise $42 billion over the next three years to further augment its Bitcoin holdings. The plan involves raising $21 billion in equity and $21 billion in fixed income securities. CEO Michael Saylor and President Phong Le believe the additional capital will reinforce the company's position in the cryptocurrency space.
MicroStrategy's purchase underscores its steadfast commitment to Bitcoin as a primary reserve asset, reflecting the company's strategic vision amid financial volatility.
