Once again, NASDAQ-listed software firm MicroStrategy (MSTR) has made headlines with the announcement of its acquisition of a staggering 11,931 Bitcoin (BTC), shelling out a cool $786 million for the purchase, according to their press release. This latest acquisition reaffirms Saylor’s unwavering faith in Bitcoin’s future and continues to place MicroStrategy at the forefront of corporate Bitcoin adoption.

The Big Buy

MicroStrategy has acquired an additional 11,931 BTC for ~$786.0M using proceeds from convertible notes & excess cash for ~$65,883 per #bitcoin. As of 6/20/24, $MSTR hodls 226,331 $BTC acquired for ~$8.33B at average price of $36,798 per bitcoin.https://t.co/jE9dGqqnON

— Michael Saylor (@saylor) June 20, 2024

On June 20, MicroStrategy announced its latest investment in the Bitcoin market. This move pushes the company’s total BTC holdings to an impressive 226,331 BTC, solidifying its position as the world’s largest corporate holder of Bitcoin. 

This sum is worth approximately $786 million at current prices. To put this in perspective, MicroStrategy now owns nearly 1.1% of the total Bitcoin supply, solidifying its position as one of the largest corporate holders of Bitcoin.

Working the Numbers 

As of the end of April, MicroStrategy held 214,400 BTC. This latest purchase brings their total holdings to 226,331 BTC. At Bitcoin’s current price of approximately $66,000, at press time, these holdings are worth just shy of $15 billion.

The company secured these BTCs at an average price of $36,798 each, roughly $8.33 billion.

This purchase wasn’t a spur-of-the-moment decision. It was made possible through a strategic move earlier in the year when MicroStrategy issued an $800 million convertible note—a type of debt security that can be converted into a pre-determined amount of the issuing company’s equity. Initially planned for $500 million, the offering size was increased to $700 million and ultimately closed at $800 million. This fundraising effort provided the capital necessary for the massive Bitcoin acquisition and further showcases the company’s continued commitment to Bitcoin as a treasury asset.

Michael Saylor’s Vision

Led by Executive Chairman Michael Saylor, MicroStrategy, since August 2020, embarked on its Bitcoin accumulation, converting significant portions of its balance sheet into cryptocurrency. Saylor’s vision extends beyond his company; he aims to spearhead a broader movement encouraging other corporations to adopt BTC as part of their treasury management. He believes Bitcoin is the ultimate hedge against inflation and a superior store of value compared to traditional fiat currencies. 

Saylor’s bullish stance was made clear in a recent interview where he stated, “Bitcoin is the apex property of the human race. It’s better than gold, it’s better than everything that came before it. And we are selling the top of the fiat pyramid to buy the bottom of the crypto pyramid.”

While some companies have cautiously added modest amounts of Bitcoin to their balance sheets, MicroStrategy’s bold approach stands out. A stack example is the U.S.-listed Semler Scientific (SMLR), which added BTC to its treasury assets in late May and aimed to tap capital markets for substantial purchases. This saw their shares rise by over 60% since disclosing their BTC acquisitions. 

Market Reactions

Currently, up by 2%premarket to $1,507, MicroStrategy’s (MSTR) shares have surged approximately ten-fold since their initial BTC purchases four years ago. Bernstein, a brokerage firm, recently initiated coverage of MicroStrategy, setting a bullish $2,890 price target for the company’s shares.

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