MicroStrategy Acquires $2.1B Worth of Bitcoin, Total Holdings Now Exceed 423,000 BTC
By Benzinga
MicroStrategy (NASDAQ:MSTR) disclosed that it acquired 21,550 Bitcoin (CRYPTO: BTC) for approximately $2.1 billion in the first week of December.
What Happened: The company paid an average of $98,783 per Bitcoin, factoring in fees and expenses, according to a filing with the U.S. Securities and Exchange Commission (SEC).
The purchase was financed through the issuance and sale of 5,418,449 company shares, generating net proceeds of about $2.13 billion.
MicroStrategy, led by Executive Chairman Michael Saylor, has expanded its bitcoin holdings to 423,650 BTC, valued at approximately $42 billion at current market prices.
This total represents more than 2% of Bitcoin’s fixed supply of 21 million coins, showing the company’s ongoing commitment to its cryptocurrency strategy.
This marks the fifth consecutive week of significant Bitcoin acquisitions by MicroStrategy.
During this period, Bitcoin’s price has surged by 40%, while MicroStrategy’s stock has risen 20%.
The company’s stock has gained an astonishing 480% year-to-date, drawing mixed reactions from financial analysts.
Also Read: Bitcoin Seller’s Delight: Bhutan Transfers $40M In BTC To QCP Capital
Why It Matters: The acquisitions coincided with bitcoin surpassing the $100,000 milestone last week, marking a historic first for the digital asset.
U.S. investor activity and significant inflows into spot Bitcoin exchange-traded funds (ETFs) are believed to have driven the rally.
According to data from Farside Investors, spot bitcoin ETFs attracted $2.73 billion in fresh funds last week, reflecting growing institutional interest.
While Bitcoin’s price hit a peak of $103,679 last week, it has since settled at $99,000 levels.
MicroStrategy’s stock also showed a slight decline, down 1% to $395 in premarket trading on Monday.
In a related development, Riot Platforms (NASDAQ:RIOT), a prominent Bitcoin mining company, announced a $500 million convertible note offering.
Riot intends to allocate a significant portion of the proceeds toward expanding its Bitcoin holdings, signaling continued corporate adoption of digital assets.
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