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MicroStrategy Buys More Bitcoin Despite Market Downturn: Adds 2,486 BTC to Holdings

MicroStrategy Buys More Bitcoin Despite Market Downturn: Adds 2,486 BTC to Holdings

MicroStrategy has reaffirmed its status as one of the largest institutional holders of Bitcoin, purchasing an additional 2,486 BTC last week. The company's bold strategy continues even as the market price remains below their average acquisition cost, underlining a long-term commitment to cryptocurrency accumulation.

Key Takeaways

  • MicroStrategy added 2,486 BTC for $168.4 million in the last week.
  • The company now holds 717,131 BTC, acquired at an average price of $76,027 per coin.
  • The current market price for Bitcoin is $68,000, placing MicroStrategy’s position at a notional loss.
  • Recent buys were funded through common stock and preferred stock sales.
  • MicroStrategy's shares have seen declines in both premarket trading and over the past year.

Continued Bitcoin Acquisition Despite Price Dip

MicroStrategy, led by Michael Saylor, has once again expanded its enormous Bitcoin portfolio by acquiring 2,486 BTC over the past week. This purchase brings the firm’s total Bitcoin holdings to 717,131 BTC, purchased at an aggregate cost of $54.52 billion. The average per-coin cost stands at $76,027—substantially higher than Bitcoin’s current price, which hovers around $68,000.

Despite this price discrepancy—which equates to an unrealized loss of about $8,000 per coin, or nearly $5.7 billion in total—notably, MicroStrategy remains steadfast in its accumulation strategy. This highlights the company’s long-term conviction in Bitcoin as a reserve asset.

Funding the Purchases

The latest acquisition was funded through the sale of approximately $90.5 million in common stock and $78.4 million in STRC preferred stock. This financing approach enables MicroStrategy to leverage capital markets to support its ongoing Bitcoin accumulation, even as its share price has experienced volatility. Notably, MicroStrategy’s stock is down more than 60% year-over-year, reflecting broader challenges in both the crypto and equities markets.

Institutional Demand for Bitcoin Persists

MicroStrategy’s relentless acquisition aligns with a broader trend of institutional adoption. Elsewhere in the world, major investment funds in Abu Dhabi have significantly increased their holdings in Bitcoin ETFs, further signaling confidence in Bitcoin as a long-term store of value and investment vehicle.

Market Outlook

While the current market price places MicroStrategy’s substantial BTC holdings at an unrealized loss, the company’s persistent buying underscores its role as a bellwether for institutional crypto adoption. Investors and analysts will be watching closely to see if this long-term bullish posture is ultimately rewarded as cryptocurrency markets continue to evolve.

References

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