MicroStrategy Buys the Dip, Adds 220 Bitcoin for $27.2M
The enterprise software firm continues its aggressive Bitcoin accumulation strategy, bringing its total holdings to 640,250 BTC.
MicroStrategy (MSTR), the enterprise software company that has become a corporate flag-bearer for Bitcoin, has added to its already substantial holdings, purchasing an additional 220 bitcoins for $27.2 million in cash. The acquisition, which took place between October 6 and October 12, demonstrates the company's continued conviction in its cryptocurrency strategy, even as the digital asset market experiences significant volatility.
The latest purchase was executed at an average price of approximately $123,561 per bitcoin, fees and expenses included, . This addition brings MicroStrategy's total Bitcoin holdings to a staggering 640,250 BTC. The company's aggressive accumulation strategy, spearheaded by its co-founder and executive chairman, Michael Saylor, has made it the largest corporate holder of Bitcoin.
The timing of the purchase is noteworthy, as it comes after a recent dip in the price of Bitcoin, which had briefly fallen below $108,000. This “buy the dip” approach is consistent with Saylor's long-stated belief in Bitcoin as a superior store of value compared to traditional assets. The company's total Bitcoin holdings were acquired for an aggregate purchase price of approximately $47.38 billion, reflecting an average purchase price of roughly $74,000 per Bitcoin.
MicroStrategy's stock price, which is closely correlated with the price of Bitcoin, has experienced its own share of volatility. After a 4.8% drop on Friday, October 10, the stock saw a modest pre-market increase of around 1% on Monday, October 13, following the announcement of the latest Bitcoin purchase. This underscores the market's close attention to the company's Bitcoin strategy as a key driver of its valuation.
The company's unwavering commitment to its Bitcoin strategy has been a topic of both admiration and skepticism in the financial world. Proponents view MicroStrategy as a visionary company, leveraging its balance sheet to hedge against inflation and position itself for a future where digital assets play a more significant role. Critics, however, point to the inherent volatility of cryptocurrencies and the risks associated with such a concentrated bet on a single asset class. For now, , and the market will be watching closely to see how this bold experiment in corporate treasury management unfolds.