Big Board Alerts

November 30, 2023
MicroStrategy expands Bitcoin portfolio with $593M purchase

Business intelligence firm MicroStrategy has made a significant move in the cryptocurrency market, purchasing an additional 16,130 Bitcoins for approximately $593.3 million. This latest acquisition brings the company’s total Bitcoin holdings to a staggering 174,530, acquired at an average price of just over $30,000 per Bitcoin, as announced by the company’s founder and chairman, Michael Saylor.

Saylor, who shared the news on X, revealed that the company paid an average of $36,785 per Bitcoin in this latest tranche. This strategic investment has elevated the value of MicroStrategy’s Bitcoin holdings to over 70% of its total stock market valuation, which currently stands at $7.3 billion. This move underscores the company’s confidence in Bitcoin as a long-term investment.

MicroStrategy’s journey with Bitcoin began in August 2020, marking it as one of the early institutional adopters of the cryptocurrency. Since its initial purchase, the company has consistently increased its Bitcoin reserves, despite the digital asset’s notorious price volatility. As of now, MicroStrategy’s Bitcoin treasury is more than 12 times larger than that of its closest institutional peer, Bitcoin miner Marathon Digital, which possesses 13,726 Bitcoins valued at $517 million at current market prices.

Bitcoin as a reserve asset

Saylor has been vocal about his belief in Bitcoin, viewing it as a reserve asset that can shield the enterprise software company from inflationary pressures. This perspective aligns with the views of several other investors who see cryptocurrencies, particularly Bitcoin, as a hedge against inflation and economic uncertainty.

The company’s aggressive investment in Bitcoin has not only positioned it as a major player in the cryptocurrency space but also reflects a broader trend of institutional adoption of digital assets. As more companies and financial institutions explore cryptocurrencies as a viable asset class, MicroStrategy’s moves could be indicative of a larger shift in corporate investment strategies.

At the time of writing, Bitcoin is trading at $37,650. The cryptocurrency market continues to attract attention from investors around the globe, with companies like MicroStrategy leading the charge in institutional adoption.

The post MicroStrategy expands Bitcoin portfolio with $593M purchase appeared first on ReadWrite.


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