MicroStrategy, the largest corporate holder of bitcoin (BTC), has made another significant purchase. The Nasdaq-listed software firm acquired an additional 11,931 BTC for $786 million, according to a recent press release.
Total Bitcoin Holdings
Led by Executive Chairman Michael Saylor, MicroStrategy held 214,400 bitcoins at the end of April. With this latest acquisition, the company’s total holdings have reached 226,331 BTC. At the current bitcoin price of around $66,000, these holdings are valued at just under $15 billion. The company’s average purchase price for its bitcoin is $36,798 per BTC, totaling roughly $8.33 billion.
Recent Funding and Purchases
This recent purchase followed MicroStrategy’s $800 million convertible note offering to institutional investors. Initially set at $500 million, the offering size increased to $700 million and ultimately closed at $800 million. In March, the company added 9,245 BTC for $623 million after a similar debt issuance.
Strategy and Market Influence
MicroStrategy began accumulating bitcoin in 2020, aiming to promote BTC as a reserve asset for other corporate treasuries. Although a few companies have added bitcoin to their balance sheets, U.S.-listed Semler Scientific (SMLR) stands out. In the past three weeks, Semler not only added a sizable amount of bitcoin but also sought to raise capital to buy more, mirroring MicroStrategy’s strategy.
Market Performance
MicroStrategy’s shares have increased roughly ten-fold since it started purchasing bitcoin four years ago. Semler’s shares have risen by more than 60% since it disclosed its first bitcoin buys in late May.
Analyst Coverage
Last week, brokerage firm Bernstein began coverage of MicroStrategy, setting a $2,890 price target for the company’s shares with an outperform rating. MSTR shares are currently up 2% premarket to $1,507.
