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MicroStrategy has continued to augment its Bitcoin (BTC) holdings, recently disclosing the purchase of 3,000 more BTC for over $155 million recovered from sales of its shares.
Michael Saylor, prominent Bitcoin bull and executive chairman at MicroStrategy, recently called attention to the development in a post on X. Saylor shared a Form 8-K filed by MicroStrategy with the U.S. SEC today, detailing the circumstances surrounding the purchase.
MicroStrategy has acquired an additional 3,000 BTC for ~$155 million at an average price of $51,813 per #bitcoin. As of 2/25/24, @MicroStrategy now hodls 193,000 $BTC acquired for ~$6.09 billion at an average price of $31,544 per bitcoin. $MSTR https://t.co/micudbYf3P
— Michael Saylor⚡️ (@saylor) February 26, 2024
Information from the filing confirms that MicroStrategy acquired the Bitcoin tokens between Feb. 15 and Feb. 25 at an average price of $51,813 per BTC. This brings the total purchase amount for the 3,000 tokens at $155,439,000 ($155.44 million).
According to MicroStrategy, the funds leveraged for the purchase were sourced from sales of its shares and excess cash it recovered from last year’s operations.
Given Bitcoin’s current price of $51,427, the recently-acquired tokens are now worth $154.2 million, indicating a short-term unrealized loss of $1.157 million.
Overall, MicroStrategy’s Bitcoin stash has now appreciated to 193,000 BTC tokens. The firm noted in the filing that it procured these tokens at an average cost of $31,544 per BTC. This brings the total aggregate cost price of its Bitcoin holdings to $6.09 billion.
Impressively, these tokens are now valued at $9,925,424,510 ($9.925 billion) against prevailing rates, suggesting that MicroStrategy is now witnessing a massive $3.83 billion profit on its Bitcoin bet.
MicroStrategy to Sustain Its Bitcoin Purchase Campaign
The latest purchase disclosure comes less than a week after Michael Saylor confirmed that MicroStrategy will continue buying Bitcoin forever.
While speaking with Bloomberg last week, the dedicated Bitcoin proponent emphasized that he will continue purchasing the top, as BTC is the “exit strategy.”
While some raised concerns of the emergence of the spot Bitcoin ETFs making it more difficult for MicroStrategy to keep procuring more BTC, Saylor dismissed these concerns, expressing bullishness toward the products. In April 2022, amid the bear market, Saylor also stressed that he would not stop buying BTC.
The recent development marks MicroStrategy’s second disclosure of a BTC purchase this year. The company started buying Bitcoin in August 2020 with an initial purchase of 21,454 BTC for $250 million. Since then it has continued to increase its stash, making it one of the largest BTC holders.