MicroStrategy Expands Bitcoin Holdings at Lower Costs
MicroStrategy recently added to its Bitcoin reserves at an average cost of $27,053 per coin, marking a 9% reduction compared to its overall average acquisition price.
In a regulatory filing on Monday, software development firm MicroStrategy (MSTR) revealed its latest Bitcoin acquisition, totaling nearly $150 million.
The filing indicates, “MicroStrategy, together with its subsidiaries, acquired approximately 5,445 bitcoins for approximately $147.3 million in cash, at an average price of approximately $27,053 per bitcoin, inclusive of fees and expenses.”
MicroStrategy currently holds approximately 158,245 BTC, acquired at an aggregate cost of around $4.68 billion, with an average purchase price of approximately $29,582 per bitcoin.
As stated in a Form 8-K filing with the United States Securities and Exchange Commission, MicroStrategy and its affiliates completed this acquisition between August 1 and September 24.
This recent purchase aligns with Bitcoin’s recent sideways trading, hovering around $26,000 for several weeks. Bitcoin experienced a brief surge to $28,000 on August 29, followed by a dip to as low as $25,000 on September 11. Currently, Bitcoin is trading at $26,081, reflecting a 1.9% decline in the last 24 hours and a 4% decrease over the past week.
MicroStrategy’s move is consistent with its history in the cryptocurrency space. The company began its Bitcoin investment journey in August 2020 and has consistently increased its Bitcoin holdings, occasionally using debt to fund certain acquisitions.
As awareness of Bitcoin’s value as a store of value and a potential hedge against economic instability grows, it remains uncertain whether other institutions will follow MicroStrategy’s lead.
