MicroStrategy Acquires $1.5 Billion in Bitcoin, Extending Record Holdings
The company now owns 402,100 Bitcoin, leveraging equity and debt to fund its aggressive cryptocurrency strategy.
- MicroStrategy purchased 15,400 Bitcoin for $1.5 billion at an average price of $95,976 per coin, bringing its total holdings to 402,100 BTC, valued at approximately $38 billion.
- The company has raised $1.48 billion through stock sales in the past week, part of a broader plan to raise $42 billion over three years to fund Bitcoin purchases.
- MicroStrategy shares have surged over 500% year-to-date, outperforming Bitcoin itself, as the company leverages its Bitcoin holdings for shareholder returns.
- Chairman Michael Saylor presented to Microsoft's board, urging the tech giant to adopt Bitcoin as a treasury strategy, projecting potential gains of up to $5 trillion in market value.
- While the strategy has fueled growth, analysts warn of risks if Bitcoin's price stagnates or declines, which could pressure MicroStrategy's debt-heavy financial model.