MicroStrategy, led by co-founder and executive chairman Michael Saylor, has once again made headlines in the cryptocurrency market. On Sept. 25, Saylor announced the acquisition of 5,445 BTC by the firm, a move that has sent a bullish signal throughout the industry. The purchase, made in cash, amounted to $147.3 million and was executed at an average price of $27,053 per BTC.
According to a Form 8-K filing with the US SEC, MicroStrategy and its subsidiaries completed this acquisition between Aug. 1 and Sept. 24. With this latest addition, as of Sept. 24, MicroStrategy and its subsidiaries now hold an impressive total of approximately 158,245 BTC.
Cost Analysis of MicroStrategy’s Bitcoin Holdings
It’s worth noting that MicroStrategy’s Bitcoin holdings have been accumulated at an average purchase price of roughly $29,582 per coin, inclusive of fees and expenses. This brings the aggregate purchase price for the company’s entire Bitcoin portfolio to a staggering $4.68 billion.
Bitcoin’s Recent Performance
This significant investment comes at a time when Bitcoin has experienced a period of relatively stable trading. While it briefly touched $28,000 on Aug. 29, the cryptocurrency saw a dip to as low as $25,000 on Sept. 11. Currently, Bitcoin is trading at $26,081, reflecting a 1.9% decrease over the past 24 hours. Over the past seven days, it has also recorded a decline of approximately 4%, according to data from CoinGecko.
MicroStrategy’s Continued Confidence in Bitcoin and Financial Performance
This recent purchase underscores MicroStrategy’s unwavering confidence in Bitcoin as a valuable asset. Notably, the company had previously acquired 12,333 BTC for $347 million in June 2023, at an average purchase price of $29,668 per coin.
MicroStrategy’s venture into cryptocurrency has been accompanied by notable financial achievements. In Q1 2023, the company reported its first profitable quarter since 2020, primarily attributed to a one-time income tax benefit. In the subsequent quarter, MicroStrategy continued to maintain profitability, reporting $22.2 million in net income in early August.
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