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.
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