MicroStrategy Buys More Bitcoin

MicroStrategy, known for its substantial Bitcoin holdings, has capitalized on recent market dips to expand its cryptocurrency portfolio. This action was highlighted in their Q1 2024 financial announcement this Monday, underscoring the firm’s ongoing commitment to Bitcoin amidst a turbulent period for cryptocurrencies.

The firm, which brands itself as both a software entity and a “Bitcoin development company,” has purchased an additional 122 Bitcoin at a cost of $7.8 million between April 1 and April 26. Although this purchase is modest compared to its historical acquisitions, it is significant enough to elevate the company’s holdings to a record high.

As of last Friday, MicroStrategy’s inventory of Bitcoin stands at 214,400 units, valued at approximately $13.5 billion, based on the current market price. This substantial holding constitutes over 1% of the finite supply of Bitcoin, which is capped at 21 million coins, with nearly 19.7 million already in circulation.

Despite a recent downturn in the market, where Bitcoin shed over $10,000 from its March peak of $73,737, MicroStrategy remains profitably invested. The average purchase price per Bitcoin for the company is reported at $35,180, reflecting a robust gain given the current price of approximately $63,026.

Michael Saylor, the founder and Chairman of MicroStrategy, is a vocal proponent of Bitcoin. His transformation of the company’s strategic direction towards Bitcoin, coupled with his active participation in cryptocurrency discourse—often symbolized by his “laser-eyed” Bitcoin memes—reinforces his and the company’s bullish outlook on the digital asset.

MicroStrategy’s latest acquisition not only reaffirms its bullish stance on Bitcoin but also highlights a strategic approach to capitalizing on market fluctuations to bolster its investment portfolio. As the crypto markets continue to evolve, the company’s aggressive acquisition strategy positions it as a key player in the broader financial landscape of digital assets.