MicroStrategy Expands Bitcoin Holdings with Latest Acquisition
MicroStrategy's Latest Bitcoin Acquisition
MicroStrategy has recently expanded its Bitcoin portfolio by purchasing over 1,000 Bitcoins for $29.3 million. This acquisition increases the company's total Bitcoin holdings to approximately 140,000 BTC.
Strategic Bitcoin Purchases
The company, led by Michael Saylor, acquired these Bitcoins between March 24, 2023, and April 4, 2023. The average purchase price was approximately $28,016 per Bitcoin. This follows a significant purchase of 6,500 BTC for $161 million just days prior.
Current Bitcoin Holdings
As of early April 2023, MicroStrategy's total Bitcoin holdings were acquired at an aggregate cost of $4.17 billion. The average price of their total Bitcoin holdings now stands at $29,803. With Bitcoin's current trading price at $28,217, MicroStrategy is nearing a break-even point, needing just a slight increase to reach profitability.
Impact on MicroStrategy's Share Price
Despite the strategic expansion of its Bitcoin holdings, MicroStrategy's share price fell by over 4% following the announcement. Currently trading at $285, the stock has not seen a bullish response from the market. This comes after a challenging previous year, where the company faced a 72% decline due to various market issues in the crypto sector.
Looking Ahead
MicroStrategy's continuous investment in Bitcoin reflects its strategy to hedge against inflation, initiated in 2020. As the company approaches a break-even point, further Bitcoin price increases could lead to significant profitability. However, the current market response indicates ongoing volatility and investor caution.
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