The Most Recent Acquisition Puts MicroStrategy in Possession of Roughly 1% of Bitcoin

With its second multi-million dollar Bitcoin acquisition in less than a week, MicroStrategy Inc. increased its holdings to over 1% of the total supply of Bitcoin.

According to a US Securities and Exchange Commission statement on Tuesday, the enterprise software firm bought 9,245 Bitcoin for $623 million between March 11 and March 18, as part of its corporate strategy. The issue of convertible notes was the primary means of financing the transaction and the $821.7 million Bitcoin buy that was announced last week.

As a hedge against inflation and a replacement for cash, MicroStrategy's chairman and co-founder, Michael Saylor, began purchasing Bitcoin in 2020.

 The 214,246 tokens held by the corporation are worth around $14 billion. With about 19.7 million tokens released thus far, the maximum total quantity of Bitcoin is 21 million. The target year for reaching the milestone is 2140.

By 2024, almost 25% of MicroStrategy's Bitcoin acquisitions had taken place, with an average cost that was more than double that of previous year, as revealed by Bloomberg statistics.

If the report is to be believed, MicroStrategy has an average holding price of $35,160 in Bitcoin, with the most recent buy costing $67,382. Tuesday saw a 5.7% decline in Bitcoin value, pegged at $63,500.

A private sale of convertible senior notes with a face value of $603.75 million was closed on March 18 by the company situated in Tysons Corner, Virginia.

Several companies have taken advantage of the recent spike in Bitcoin's value and stock price to increase their debt levels; MicroStrategy is only one of them. United States-based cryptocurrency exchange Coinbase Global Inc. increased the price of its convertible notes from $1.05 billion to $1.26 billion on Monday.

stay turned for development