MicroStrategy, the largest corporate holder of Bitcoin in the world, has made its latest acquisition of the market’s largest cryptocurrency. According to a filing with the Securities and Exchange Commission (SEC), the company purchased approximately 5,445 Bitcoin for $147.3 million in cash between August 1 and September 24.
The average price per coin, which includes fees and expenses, was approximately $27,053. This recent purchase brings MicroStrategy’s total Bitcoin holdings to around 158,245, acquired at an average price of $29,582. The aggregate purchase price for the company’s Bitcoin holdings now stands at $4.68 billion.
While this ongoing accumulation of Bitcoin demonstrates MicroStrategy’s confidence in the asset as a long-term investment and a store of value, the current bear market has impacted the company’s historical investments in the cryptocurrency. With Bitcoin down 1.7% on the day and trading just above $26,100 at the time of writing, the fiat value of Bitcoin held on MicroStrategy’s balance sheet is approximately $4.1 billion.
This recent purchase follows MicroStrategy’s acquisition of 12,333 BTC for $347 million in June 2023, at an average purchase price of $29,668 per BTC. The company began acquiring cryptocurrency in August 2020, with co-founder Michael Saylor stating that the primary motivation was to use it as a hedge against inflation.
Saylor has been vocal about MicroStrategy’s strategy to buy and hold Bitcoin, emphasizing the company’s consistency, transparency, and responsibility in pursuing this strategy. Despite experiencing a $24.1 million impairment charge on its Bitcoin holdings, MicroStrategy saw its first profitable quarter since 2020 in Q1 2023, primarily due to a one-time income tax benefit. The company sustained profitability in the second quarter with $22.2 million in net income.
MicroStrategy’s continued accumulation of Bitcoin showcases its commitment to the digital asset and belief in its long-term potential. As the bear market persists, the company remains optimistic about the future of Bitcoin and its ability to store value.
