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MicroStrategy Inc., the software analytics company, announced Thursday that it increased its investment by purchasing an additional 16,130 bitcoins for about $593.3 million, at an average price of $36,785 per coin. . This strategic move, announced today, increased the company’s total Bitcoin holdings to 174,530, marking a significant portfolio expansion of more than 10%.
The company, led by CEO Michael Saylor, has been acquiring Bitcoin since August 2020, when it first adopted the cryptocurrency as its primary reserve asset. As of November 29, MicroStrategy’s total Bitcoin assets have reached a valuation of approximately $6.6 billion. The latest acquisition further increased their average purchase price to $30,252 across their entire Bitcoin portfolio.
In addition to buying Bitcoin, MicroStrategy has begun offering $750 million worth of Class A common stock. The offering is being made in partnership with financial services firm Cowen and Company. The move is part of the company’s broader strategy to continue investing in Bitcoin, as indicated by CEO Phong Le, who previously noted the company’s intention to survive with the regular redemption of Bitcoin.
The announcement of the stock offering and Bitcoin purchase coincided with a small initial trading setback for MicroStrategy (NASDAQ:MSTR) shares, which saw a 0.82% drop. Despite this, the company previously recorded a significant profit of $900 million on their Bitcoin holdings as the cryptocurrency price crossed the crucial $30k threshold.
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