Simply put
- MicroStrategy’s Bitcoin Journey – I first invested in Bitcoin about five years ago.
- The firm now possesses 628,946 BTC, valued at over $75.5 billion.
- Recently, they made modest purchases, spending just $18 million on Bitcoin last week.
On Monday, MicroStrategy announced another acquisition of cryptocurrency, which increased their total holdings to 628,946 BTC—worth more than $75.5 billion at current market rates.
Based in Tysons Corner, Virginia, the company revealed it bought 155 BTC for $18 million recently. So far, they have invested over $2 billion in Bitcoin acquisitions. The last significant purchase occurred on July 29, when they acquired 21,021 BTC for nearly $2.5 billion.
However, this latest acquisition, announced on the five-year anniversary of their first Bitcoin investment, is the smallest since March. Back then, they spent only $10.7 million on assets. It feels like a cautious step, maybe the lowest investment they’ve made this year.
Initially, MicroStrategy began investing in Bitcoin in August 2020, seeing it as a way to better return on investment for shareholders, especially during economic turmoil due to the pandemic.
Today, the company is the largest corporate holder of Bitcoin and is focused on finding ways to securitize it. This model lets investors buy shares while being exposed to major cryptocurrencies.
To fund these purchases, the company issued debt. Since the first time they bought Bitcoin, MicroStrategy’s stock has skyrocketed, increasing over 2,700%.
Their shares (NASDAQ:MSTR) were recently trading around $411, with Bitcoin hitting $120,095 per coin on Monday morning according to data from Coingecko.
Bitcoin, which is the leading cryptocurrency by market capitalization, has risen by 27% since the beginning of the year. Its all-time high is $122,838. Meanwhile, MSTR’s stock price peaked at nearly $499 per share last November.
Many small and medium-sized businesses are starting to adopt Bitcoin into their financial plans. However, there are concerns among some experts—they’ve cautioned that cryptocurrency isn’t a one-size-fits-all solution and can be quite risky.
