MicroStrategy, now known as Strategy, reaffirms its commitment to Bitcoin by adding 130 more coins to its portfolio. This latest acquisition, valued at approximately $10.7 million, brings the company's total Bitcoin holdings to 499,226, solidifying its position as one of the largest corporate holders of the cryptocurrency.
New Bitcoin Acquisition
The purchase was made between March 10 and March 16 at an average price of $82,981 per Bitcoin. This strategic acquisition was funded through the sale of 123,000 shares of Strategy’s 8.00% Series A perpetual preferred stock, generating net proceeds of about $10.7 million. Notably, no Class A common stock was sold during this period, maintaining the voting power of existing shareholders, including Michael Saylor.
Financial Aspects of the Strategy
This acquisition follows a significant purchase in February, where Strategy spent nearly $2 billion on 20,365 Bitcoins. The company’s total Bitcoin stash is now valued at over $41.6 billion, with an average cost per Bitcoin of approximately $66,360.
Future and Prospects of Bitcoin
Michael Saylor remains optimistic about Bitcoin’s future, despite current market volatility. He believes Bitcoin will experience significant growth once investor confidence returns. In a broader context, Strategy’s aggressive Bitcoin strategy has transformed the company into a leveraged Bitcoin proxy, with plans to raise up to $21 billion through preferred stock offerings to further bolster its cryptocurrency holdings. This approach has sparked both interest and concern among investors, due to its reliance on debt instruments and stock offerings.
As Bitcoin continues to navigate a challenging economic landscape, Strategy’s actions highlight the ongoing debate about the role of corporate entities in the cryptocurrency market and their potential influence on price dynamics.
