MicroStrategy adds to Bitcoin stockpile, bringing value of holdings to $4.6B
MicroStrategy bought 5,455 units of Bitcoin between Aug. 1 and Sept. 24.
The company revealed its latest purchase in a Form 8-K filing with the U.S. Securities and Exchange Commission (SEC) on Sept. 25. According to the filing, the company made the purchase at an average price of $27,053, or $147.3 million.
The announcement further stated that the company issued and sold 403,362 units of its class A common stock valued at $0.001 per share for $147.3 million.
MicroStrategy has been buying Bitcoin since 2020, and the company has continued with the strategy even after Michael Saylor stepped down as its CEO. This continued acquisition has made its stock mirror Bitcoin performance, and some institutional investors have gained exposure to BTC by acquiring its MSTR shares.
MicroStrategy’s total holding is almost 14 times higher than the closest public company, Marathon Digital, with BTC on its reserves, according to data from Bitcoin Treasuries. Marathon Digital is the second-largest BTC miner with a market capitalization of $1.5 billion.
Despite MicroStrategy’s bullishness on Bitcoin, the company is currently holding its BTC at a loss, given the average acquisition cost is $29,582, while the asset is trading for $26,127 as of press time. Data from CryptoSlate shows that BTC is on a negative spiral, falling by over 4% in the last seven days.
Meanwhile, MicroStrategy’s MSTR shares are down 20.48% in the last five days, but its performance this year has been mostly positive, with 126% gains on the year-to-date metrics.