MicroStrategy Purchases 13,390 Bitcoins for $1.34 Billion
MicroStrategy, the Bitcoin holdings leader among U.S. publicly traded companies, announced yesterday (May 12) that the company purchased 13,390 bitcoins for $1.34 billion between May 5 and May 11, with an average purchase price of $99,856.
(Background: MicroStrategy invests another $180 million to acquire 1,895 bitcoins, as BTC consolidates at $95,000 and U.S. stocks end a nine-day rally.)
(Context: MicroStrategy launches a new $21 billion financing plan, undeterred by a $5.9 billion loss in Q1 from Bitcoin, continuing to “buy, buy, buy.”)
Following this latest acquisition, the total amount of bitcoins held by the company has reached 568,840, with a total purchase cost of $39.41 billion, resulting in an average purchase price of $69,287 per bitcoin.
MicroStrategy added that the funds for this bitcoin purchase came from the sale of its stock. The company sold 3,222,875 shares of MSTR common stock, raising $1.31 billion, with $19.69 billion worth of stock still available for sale. Additionally, MicroStrategy sold 273,987 shares of STRK preferred stock, generating $25.1 million, with $20.85 billion worth of preferred stock remaining for sale.
MicroStrategy stated that the company’s ATM plan still has significant issuance capacity, allowing for the potential to continue raising funds for bitcoin purchases in the future.
Market Performance and Bitcoin Stability
Recent rebounds in the cryptocurrency market have seen Bitcoin consistently maintaining above the $100,000 mark, which has positively affected MicroStrategy’s stock price.
According to Google Finance data, as of the market close on May 12, MicroStrategy’s stock price was $404, reflecting a 6.95% increase over the past five days, with a market capitalization surpassing $110 billion.
At the time of writing, Bitcoin was reported at $102,547, although it briefly dipped to $100,733 at 2 a.m., suggesting an effort by major players to clear leverage. Whether BTC can sustain its position above $100,000 and further break resistance to set new historical highs is a matter worth continuous observation.
Related Reports
- MicroStrategy spends $1.42 billion to acquire 15,355 BTC; total holdings exceed 550,000 bitcoins, MSTR surges 27% in a month.
- New crypto titan emerges! Tether, SoftBank, and Bitfinex jointly establish “21 Capital” with $3 billion, solely to purchase bitcoins, replicating MicroStrategy’s success.
- GameStop follows MicroStrategy’s lead in buying bitcoins! Plans to issue $1.3 billion in convertible bonds, stock price plummets by 22%.