MicroStrategy, the company led by Executive Chairman Michael Saylor, has ramped up its Bitcoin holdings with a massive acquisition. Saylor announced Saturday that the company purchased 15,400 Bitcoin for $1.5 billion, spending an average of $95,976 per coin.
MicroStrategy’s total Bitcoin holdings now reach approximately 402,100 BTC, $38 billion, at the current trading price of $95,194 per coin.
MicroStrategy has spent some $23.4 billion on Bitcoin acquisitions since 2020, coming out with an average cost of $58,263 per coin. According to PIMP, the firm has reportedly pulled in an estimated $15 billion in unrealized gains to its holdings.
MicroStrategy Uses Shares to Fund Bitcoin Purchases
As part of its Bitcoin purchases, MicroStrategy has funded the purchases with subsequent sales of shares and securities, offering the innovative “BTC Yield” too. For the quarter and year to date, the company’s BTC Yield is 63.3 percent and 38.7 percent, respectively, according to Saylor.
The aggressive Bitcoin acquisition strategy has encouraged other significant names in the industry. Like Tokyo-based Metaplanet and Bitcoin mining firm Marathon Digital, they are adopting similar strategies, using financial instruments to boost their Bitcoin reserves.
As a bonus to shareholders, Metaplanet has also pledged support to reward holders of its stock with Bitcoin. Marathon Digital, for example, announced its own $700 million private convertible note offering last week with a $105 million extension option as it secured such an investment for the first time. Proceeds are earmarked for Bitcoin acquisitions and note buybacks that the company has committed to through its Bitcoin centric growth model.
Saylor has been a prominent Bitcoin advocate and in February pitched Bitcoin adoption to Microsoft’s Board of Directors.
MicroStrategy has been on fire with Bitcoin, but Saylor’s efforts and bold moves show just how much momentum Bitcoin is starting to amass as an institutional investment. The adoption of Bitcoin continues, and MicroStrategy sets the standard for corporate cryptocurrency strategies.
