MicroStrategy Inc., a software enterprise led by Bitcoin advocate Michael Saylor, expanded its Bitcoin stash to surpass $8 billion with recent additional purchases.
Between November 30th and December 26th, the Virginia-based company bought 14,620 Bitcoins, totaling $616 million in cash. This move elevates their holdings to 189,150 Bitcoins, nearly 1% of the total available.
Saylor initiated Bitcoin purchases in 2020 to safeguard against inflation and offer an alternative to holding cash on the company’s balance sheet. This strategy has positioned MicroStrategy as a gateway for investors seeking Bitcoin exposure without direct ownership.
Addressing concerns about Bitcoin-backed exchange-traded funds, Saylor highlighted that MicroStrategy’s stock serves as a leveraged bet without fees, seeing no threat from such ETFs. The company leveraged debt financing and stock sales to fund these Bitcoin acquisitions.
The recent Bitcoin purchase averaged $42,110 per coin, while the overall average for their holdings stands at $31,168, as detailed in the company’s filing.
Despite Bitcoin’s 150% rally this year, MicroStrategy’s shares soared over 300%, eclipsing Bitcoin’s performance. On Wednesday, Bitcoin saw a 1.5% increase, reaching $42,963.
