MicroStrategy, the largest corporate holder of Bitcoin (BTC), has once again made headlines with its latest acquisition of BTC worth $615 million. This purchase has significantly boosted its holdings, pushing the total to a staggering $5.9 billion
MicroStrategy has recently utilized the majority of its at-the-market share sales to acquire an additional 14,620 Bitcoins. The company’s Executive Chairman, Michael Saylor, announced via Twitter that the Bitcoins were purchased at an average cost of $42,110 each. This recent acquisition has increased the company’s total Bitcoin holdings to 189,150 BTC, valued at approximately $5.9 billion. These Bitcoins were bought at an average price of $31,168 per BTC.
The company initiated its Bitcoin acquisition journey in August 2020. Before the latest purchase, the company had bought 16,130 BTC last month, which was valued at around $608 million at that time. In a separate disclosure, MicroStrategy revealed that it had raised $610.1 million from its previously declared at-the-market share offering of $750 million. As of early December, the company had approximately $2 billion in profit from its Bitcoin holdings.
Bitcoin’s Value Surge and MicroStrategy’s Profitable Ride
This development coincides with the recent surge in Bitcoin’s value over the past few months. This surge is fueled by the hopeful anticipation that U.S. regulatory bodies may give the green light to exchange-traded funds (ETFs) that hold BTC.
Analysts James Seyffart and Eric Balchunas from Bloomberg Intelligence have suggested that the U.S. Securities and Exchange Commission might approve some of the proposed Bitcoin ETFs by January 10. Among the 13 potential proposals aiming for fund launches, notable names include BlackRock, Ark, 21Shares, and Franklin Templeton.
Many experts think that such a move could trigger a massive influx of investment into the cryptocurrency. Bitcoin has experienced a 200% rise in value. In the past year, MicroStrategy’s shares have seen a significant increase of over 337%. Currently, the company’s stock is trading close to its 52-week high of $622 in pre-market trading.
