MicroStrategy Acquires Another 27,200 Bitcoin Worth $2 Billion – MicroStrategy (NASDAQ:MSTR)

MicroStrategy Inc. MSTR announced Monday that it had purchased 27,200 Bitcoin BTC/USD for approximately $2.03 billion in cash over a ten-day period between October 31 and November 10 this year.

What happened:The acquisition was completed at an average price of $74,463 per Bitcoin, including fees and expenses.

With the new purchase, MicroStrategy now holds a total of 279,420 Bitcoin at a total purchase price of approximately $11.9 billion, an average of $42,692 per Bitcoin.

This latest acquisition was funded by proceeds from recent stock sales under two agreements with financial institutions, including TD Securities and Barclays, the company stated in a press release.

Through these agreements, MicroStrategy raised $2.03 billion through the issuance and sale of stock, a strategy that its chief executive sought Michael Saylor has used to increase the company’s Bitcoin holdings.

As of November 10, MicroStrategy has sold a total of 7,854,647 shares under these agreements, effectively exhausting the August sales agreement and deferring future share sales in the market to the October sales agreement.

Also Read: “The Party is Back” – Chainlink Co-Founder Predicts Major Crypto Growth Under Trump’s Presidency

Why it matters:

The company says it views Bitcoin as a strategic reserve asset, with long-term holdings intended to provide exposure to digital assets as an alternative to traditional capital.

Michael Saylor has been vocal about Bitcoin’s potential to improve the financial health of companies. During a recent earnings call, Saylor highlighted Bitcoin’s ability to “improve the balance sheet” and rejuvenate the value of stocks and options.

This is consistent with his earlier humorous suggestion Microsoft CEO Satya Nadellasuggesting that Bitcoin could represent a trillion-dollar opportunity for shareholders.

MicroStrategy’s strategy appears to be paying off as the company recently reported an unrealized gain of over $10 billion on its Bitcoin investments after Bitcoin’s value rose to over $82,000. This positions MicroStrategy as a leader in enterprise Bitcoin adoption, with its holdings now worth over $20 billion.

What’s next: As interest in corporate Bitcoin holdings increases, the implications of MicroStrategy’s strategy will likely be a central topic of discussion at Benzinga’s “Future of Digital Assets” event on November 19, where experts will discuss Bitcoin’s evolving role in corporate coffers and digital assets will be examined.

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