The business intelligence software company acquires an additional 6,455 Bitcoins for $150 million, bringing its total holdings to 138,955 bitcoin.
MicroStrategy’s Latest Bitcoin Acquisition
- MicroStrategy has purchased an additional 6,455 Bitcoins for approximately $150 million.
- The average price for the purchase was $23,238 per Bitcoin, as reported in a recent SEC filing.
- The company now holds a total of 138,955 Bitcoins, acquired at an aggregate price of around $4.14 billion.
Prepaying the Silvergate Loan
- In the same SEC filing, MicroStrategy revealed that it voluntarily prepaid its $161 million Silvergate loan.
- The loan, originally due on March 23, 2025, was collateralized by certain Bitcoin assets owned by MacroStrategy, a wholly-owned subsidiary of MicroStrategy.
The History of MicroStrategy’s Bitcoin Investment
- MicroStrategy first invested in Bitcoin as a reserve asset in 2020 under the leadership of former CEO Michael Saylor.
- The investment aimed to hedge against potential inflation and currency devaluation risks.
- Despite significant losses in 2022, MicroStrategy and Saylor continued to invest in the flagship digital asset.
Bitcoin’s Current Market Performance
- At the time of writing, Bitcoin is trading at $27,936.35 on the Bitstamp exchange.
- MicroStrategy’s investment appears to have an impact on the cryptocurrency’s performance, often referred to as the “MicroStrategy effect.”
The Future of MicroStrategy and Bitcoin
- As MicroStrategy continues to expand its Bitcoin holdings, the long-term success of its ongoing investment strategy remains uncertain.
- The company’s commitment to the largest digital asset signals confidence in the potential of Bitcoin as a valuable investment.
MicroStrategy’s latest Bitcoin acquisition demonstrates the company’s unwavering belief in the flagship digital asset as a reserve and investment instrument. As the company continues to build its Bitcoin holdings, the cryptocurrency market watches closely to see whether MicroStrategy’s strategy will prove successful in the long run. Stay tuned to Coin News for the latest updates on MicroStrategy, Bitcoin, and the ever-evolving world of digital assets.