MicroStrategy Acquires Additional Bitcoins and Raises Capital through Stock Sales

  • 28. June 2023

June 28, 2023 [crocon media – msch] In a recent announcement, MicroStrategy Incorporated (“MicroStrategy”) revealed its ongoing commitment to Bitcoin by acquiring approximately 12,333 bitcoins for $347.0 million in cash between April 29, 2023, and June 27, 2023. The average purchase price per bitcoin was approximately $28,136, including fees and expenses. This strategic move reinforces MicroStrategy’s belief in the long-term value and potential of Bitcoin as a digital asset.

As of June 27, 2023, MicroStrategy and its subsidiaries held a substantial portfolio of approximately 152,333 bitcoins. These bitcoins were acquired at an aggregate purchase price of around $4.52 billion, with an average purchase price of approximately $29,668 per bitcoin, inclusive of fees and expenses. This sizable holding demonstrates MicroStrategy’s strong belief in Bitcoin’s ability to serve as a store of value and potential hedge against inflation.

MicroStrategy also disclosed its intention to raise capital through a Sales Agreement entered into on May 1, 2023, with Cowen and Company, LLC and Canaccord Genuity LLC as sales agents. This agreement allows MicroStrategy to issue and sell shares of its class A common stock, with an aggregate offering price of up to $625.0 million, at various times through the agents. On June 28, 2023, MicroStrategy confirmed that it had already issued and sold a total of 1,079,170 Shares under the Sales Agreement. The net proceeds to MicroStrategy, after deducting sales commissions and expenses, amounted to approximately $333.7 million.

MicroStrategy’s continuous accumulation of Bitcoin showcases a strong belief in the digital asset’s future value. By strategically diversifying their treasury holdings with Bitcoin, MicroStrategy positions itself to benefit from potential long-term appreciation. This approach aligns with the growing acceptance of cryptocurrencies as an alternative asset class and store of value.

It is encouraging to witness MicroStrategy’s commitment to accumulating Bitcoins as part of their treasury strategy. Their extensive holdings not only demonstrate a long-term conviction in Bitcoin’s potential, but they also contribute to the overall stability and decentralization of the Bitcoin network. Moreover, the decision to raise capital through stock sales provides MicroStrategy with additional funds to pursue their Bitcoin acquisition strategy and potentially explore other business opportunities.

However, it is important to note that Bitcoin’s value is subject to market volatility and regulatory uncertainties. While MicroStrategy’s faith in Bitcoin is evident, investors and analysts should carefully consider the risks associated with such investments. The performance of Bitcoin and its impact on MicroStrategy’s financial results will depend on various factors, including market conditions and regulatory developments.

Read the original document :

Editorial Disclosure: The editorial content on this page is not provided by any entity mentioned herein. Opinions expressed here are the author’s alone, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The author(s) of this article may or may not hold a position in the mentioned stock. None of the companies discussed in the above article have paid for this content. The information provided in this article should not be considered financial advice, and readers should always do their own research before making investment decisions. However, as with any investment, there are potential risks and uncertainties to consider, such as potential regulatory changes, market volatility, and competition from other players in the industry. It is important for investors to carefully monitor this stock and its performance over time to make informed decisions about their investments. crocon media is a project of The SiLLC Assembly. This site is for entertainment purposes only. The owner of this site is not an investment advisor, financial planner, nor legal or tax professional and articles here are of an opinion and general nature and should not be relied upon for individual circumstances.

Follow Us