MicroStrategy’s strategic investment approach continues to drive its bitcoin holdings, surpassing half a million coins as it resumes purchases. The company’s recent $742.4 million acquisition has raised eyebrows in the crypto space.
The company formerly known as MicroStrategy has increased its bitcoin holdings to 478,740 BTC after purchasing $742.4 million worth of the largest cryptocurrency.
In the week ended Feb. 9, MicroStrategy bought 7,633 BTC at an average price of $97,255 per bitcoin. This purchase raised the overall average purchase price to $65,033.
Bitcoin is a decentralized digital currency that was created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto.
It uses cryptography for secure financial transactions and operates independently of central banks.
Bitcoin's supply is capped at 21 million coins, making it a scarce asset.
Transactions are recorded on a public ledger called the blockchain, which ensures transparency and security.
The company did not buy any bitcoin in the week ended Feb. 2, likely due to a blackout period during its earnings week. On Feb. 6, MicroStrategy reported a fourth-quarter net loss of $3.03 per share, compared with income of $0.50 per share a year earlier.
According to an 8-K filing, the bitcoin purchases were made using proceeds from the sale of shares under the sales agreement and the perpetual preferred equity offering of ‘Strike (STRK)’.
Executive Chairman Michael Saylor teased the purchase announcement on Sunday, stating ‘Death to the blue lines. Long live the green dots.‘ This is not the first time Saylor has made this statement, as he has been promoting the idea of bitcoin adoption for several months.
Michael Saylor is a renowned American business executive, entrepreneur, and author.
He is the CEO of MicroStrategy, a cloud-based business intelligence company.
Saylor has been a vocal advocate for Bitcoin, investing heavily in the cryptocurrency through his company's balance sheet.
He believes that Bitcoin will become a widely accepted store of value and medium of exchange.
Under his leadership, MicroStrategy has become one of the largest corporate holders of Bitcoin.
Saylor is also a bestselling author, known for his books on business strategy and innovation.
Note: The analyst who wrote this piece owns shares of ‘Strategy (MSTR)’.
