Do not fear buying high! As Bitcoin continues to rise, MicroStrategy once again splurges $820 million on a shopping spree.
MicroStrategy has purchased 12,000 bitcoins for $821.7 million, increasing its total holdings to around 205,000 bitcoins, worth over $14 billion. Since 2020, MicroStrategy has spent over $1 billion on bitcoin, which has risen by about 675%. This purchase is the company's second-largest transaction in nearly four years, causing its stock price to soar by over 1000%. Bitcoin has risen for the sixth consecutive day, with a gain of nearly 70% this year. MicroStrategy rose 5.11% after hours, closing at $1560.00.
Zhitong App learned that MicroStrategy (MSTR.US), the largest holder of Bitcoin, purchased 12,000 Bitcoins for $821.7 million, marking its second-largest transaction since it started buying Bitcoin nearly four years ago. This latest purchase has increased MicroStrategy's total Bitcoin holdings to around 205,000 coins, valued at over $14 billion.
According to documents filed by MicroStrategy with the U.S. Securities and Exchange Commission (SEC), these tokens were purchased between February 26 and March 10. The funds for the purchase came from an $800 million convertible note offering completed on March 8.
Under the leadership of Chairman and Co-founder Michael Saylor, MicroStrategy has been buying Bitcoin since 2020 as a hedge against inflation and an alternative to cash. In the first three months of 2024, MicroStrategy has spent over $1 billion on Bitcoin, more than half of last year's total purchase. Since Saylor began buying, Bitcoin has risen by approximately 675%.
Since shifting to Bitcoin, MicroStrategy's stock price has surged over 1000%. The company's market value has increased to around $25.7 billion, surpassing its previous peak set in March 2000. In December 2000, MicroStrategy settled accounting fraud charges with the SEC.
The documents show that the average price of MicroStrategy's most recent Bitcoin purchase was $68,477, while the average price of holding Bitcoin was $33,706.
On Monday, Bitcoin broke through $72,000 for the first time, rising for the sixth consecutive day. With substantial funds flowing into U.S. Bitcoin ETFs, Bitcoin's gains this year are close to 70%.
As of the time of writing, MicroStrategy rose 5.11% after hours, reaching $1560.00.