Sept 13 (Askume) – Software firm MicroStrategy MSTR.O acquired $1.11 billion worth of bitcoin between Aug. 6 and Sept. 12, raising its total holdings in the world’s largest cryptocurrency to about $9.45 billion.
Why is this important?
With backing from Wall Street and celebrities like Elon Musk, the U.S. Securities and Exchange Commission’s approval of a spot bitcoin exchange-traded fund in January brought the once emerging asset class closer to the mainstream.
Analysts say MicroStrategy’s purchases of bitcoin to protect the value of its reserve assets have helped boost the appeal of the company’s stock, which has moved in tandem with digital assets.
situation
MicroStrategy began buying and holding bitcoin in 2020 as revenue from its software business declined and is now the largest corporate holder of the cryptocurrency.
MicroStrategy will have 190,000 bitcoin on its balance sheet by 2023 and the company has said it will increase its exposure.
MicroStrategy’s board of directors decided to conduct a 10-to-1 stock split in July to facilitate investor participation .
By the numbers
MicroStrategy purchased approximately 18,300 bitcoins between August 6 and September 12 at an average price of $60,408 per bitcoin.
As of September 12, 2024, the Company and its subsidiaries held approximately 244,800 bitcoins.
The total holdings equate to approximately $9.45 billion, meaning the average purchase price per bitcoin is approximately $38,585, including fees and expenses.
MicroStrategy shares are expected to more than double in 2024, while bitcoin is up about 31% so far this year.
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