MicroStrategy Expands Bitcoin Holdings by $561M

MicroStrategy, the largest corporate holder of Bitcoin, has continued its aggressive acquisition strategy, purchasing 5,262 BTC for $561 million at an average price of $106,662. This marks the seventh consecutive week of Bitcoin purchases by the Virginia-based software company, which now holds 444,262 BTC, valued at nearly $45 billion. MicroStrategy’s total investment in Bitcoin amounts to approximately $27.7 billion, and the company has made nearly $15 billion in unrealized profits despite recent market downturns.

Michael Saylor, the company’s executive chairman, revealed the new acquisition, but the purchase has faced criticism, particularly from skeptics like U.S. stockbroker Peter Schiff. Schiff argued that MicroStrategy should focus on capitalizing on market corrections rather than making such large purchases at higher prices. The company’s purchase comes amid a broader market correction, with Bitcoin trading below $95,000 at the time of writing.

In addition to the Bitcoin purchase, MicroStrategy raised over $7 billion by selling approximately 1.32 million shares of MSTR convertible notes. The proceeds are intended to fund further Bitcoin acquisitions, reinforcing the company’s commitment to its Bitcoin strategy.

MicroStrategy’s recent move follows a similar strategy seen by Metaplanet, a Japanese company, which made its largest Bitcoin purchase to date, investing $60.6 million into its Bitcoin treasury. Despite some skepticism, MicroStrategy remains focused on its long-term investment in Bitcoin.