MicroStrategy (MSTR), led by Michael Saylor, has expanded its Bitcoin holdings once again, adding 22,048 BTC for $1.92 billion. This latest move reinforces the company’s aggressive Bitcoin acquisition strategy, bringing its total holdings to 528,185 BTC, worth over $43 billion at current prices.
Massive Purchase at an Average of $86,969 per BTC
According to a Monday filing, MicroStrategy acquired Bitcoin at an average price of $86,969 per BTC. This latest accumulation increases its total investment to $35.63 billion, with an average purchase price of $67,458 per BTC.
At present Bitcoin prices of around $82,000, the company holds an unrealised gain of over $7 billion. However, short-term volatility has affected MicroStrategy’s stock, which is down 4% premarket, mirroring Bitcoin’s 3% dip since the previous market close.
Funding the Purchase with Common Stock Issuance
MicroStrategy funded this massive Bitcoin buy primarily through common stock issuance, raising $1.2 billion in the week ending March 30. The company also secured $18.52 million via its STRK preferred share ATM and closed its STRF preferred share offering, raising an additional $711.2 million.
This approach aligns with Saylor’s strategy of leveraging equity and debt markets to continually accumulate Bitcoin.
MicroStrategy’s Growing Influence in the Bitcoin Market
With over half a million BTC now in its reserves, MicroStrategy remains the largest corporate Bitcoin holder. Its relentless buying spree continues to signal long-term bullishness on Bitcoin, despite periodic market fluctuations.
However, this aggressive accumulation also increases MicroStrategy’s exposure to Bitcoin price swings, making its stock a highly correlated proxy for BTC movements.
Will Saylor’s Bitcoin Bet Pay Off?
MicroStrategy’s commitment to Bitcoin remains unwavering, with Saylor doubling down despite high volatility. While its holdings have significantly appreciated, the company’s stock remains susceptible to BTC’s short-term price action.
As institutional adoption grows, Saylor’s bold Bitcoin strategy could continue to pay off. But with Bitcoin’s price near all-time highs, future purchases could come with greater risks.
